KARACHI: The Federal Board of Revenue (FBR) is taking several policy measures from the platform of both Customs and Inland Revenue to deal with challenges in the wake of changing and ever demanding global dynamics particularly after Pakistan completes the IMF’s Fund Facility.
It is a developed consensus that these international financial institutions such as IMF are never serious in undertaking structural reforms that could have unleashed the potential of the productive forces of the country in their clutch.
Member Customs Nasir Masroor and Member IR Rehmatullah Wazir have said that their respective groups were taking policy measures to secure revenue, plug leakages and facilitate duty/tax payers in line with the global standards.
It may be mentioned here that Pakistan is going to be free from IMF’s program shortly and Government of Pakistan is firm on the stance no to seek loans/funds from international donors. Since, the current machinery of the country’s financial management is delivering results and achieving high targets, there is likelihood that Finance Minister Ishaq Dar and Advisor Haroon Akhtar might want to maintain the synergy and Chairman FBR Nisar Mohammad Khan and former Chairman Tariq Bajwa are kept on assignments they are best suited for.
It is quite fortunate that military leadership and political government are on the same page and committed for a prosper and self-reliant Pakistan. However, there are several internal challenges also particularly the political of agitation, which is currently being pursued by Imran Khan of Tehreek-e-Insaaf, which has already caused serious economic loss to the country. Imran Khan is not only causing damage to the national economy, he is also defaming the institutions adversely affecting their morale.
Member Customs, FBR Nasir Masroor Ahmed said Pakistan Customs was taking policy measures to deal with challenges in the wake of IPRs enforcement, exponential rise in international trade, more sophisticated and demanding clients, heightened security concerns, proliferation of regional trade agreements and compliance to international conventions and these challenges were being met through end-to-end electronic solutions, efficient and effective implementation of trade agreements, withdrawal of exemptions and curbing border smuggling.
He was briefing participants of 105th National Management Course who visited FBR along with rector and faculty of National School of Public Policy (NSPP) conducting the course. Nasir Masroor Ahmed said the Customs was contributing significantly to overall tax revenue.
He gave the visiting officers an overview of the roles and responsibilities of Pakistan Customs Service in enhanced revenue mobilization, trade facilitation and effective border management.
Member Inland Revenue Policy Rehmatullah Wazir said Federal Board of Revenue (FBR) has been able to raise the number of filers of Income Tax returns to 1.1 million while measures are being taken to raise the cost of doing business for non-filers so that they are compelled to become part of the tax system.
In his presentation on the Inland Revenue Service, Member IR Policy Rehmatullah Wazir said FBR had adopted a broad range of measures and taken steps in recent months to broaden the tax base and increase the tax net. “We believe that there is a tax potential equal to Rs 5500-6000 billion and our efforts are directed to explore all possible possibilities for realizing this potential and generating much-needed resources for socio-economic spending,” he said.
He said FBR had also taken a host of measures to create distinction between filers and non-filers by raising the cost of doing business for non-filers. Similarly, new perspectives such as creation and maintenance of central data bank, simplification of tax procedures, increased reliance on direct taxes within the tax-mix, minimum tax exemptions and withholding tax, robust audit and more transparency were also being explored to promote a culture of tax compliance.
Earlier, the participants and the faculty led by NSPP Rector Muhammad Ismail Qureshi were welcomed by Member Administration FBR Majid Qureshi who in his welcome address briefly explained the role and responsibilities of FBR and thanked the NSPP for choosing FBR as a key government organization for inculcating strategic thinking among the course participants engaged in public policy formulation and decision-making at higher levels.