KARACHI: The Federal Minister for Finance, Revenue and Economic Affairs, Dr. Shamshad Alcthar, has announced the formation of a Task Force on Tax & FBR Reforms to develop proposals and measures for improving the tax system and collection in Pakistan. The Task Force will be chaired by the Finance Minister and will include experts from academia, civil society, private sector and FBR.
The main objectives of the Task Force are to:
· Propose an implementation plan for separating revenue collection and tax policy functions.
· Review the performance, data, gaps and leakages of the current tax system and suggest ways to enhance efficiency, equity and transparency.
· Identify critical structural reforms of the tax administration, human resource requirements, taxpayer grievance mechanisms, incentive alignment and facilitation patterns.
· Review tax policy measures to capture optimal tax base, correct tax gaps and increase economic efficiency and equity of the tax system.
· Analyze policy options for base assignment to improve collection systems.
· Examine the tax expenditures of the government and propose a mechanism for cost-benefit analysis for any proposal of tax exemptions.
· Make recommendations on the use of information technology to maximize tax compliance, enforcement, tax base broadening, facilitation and accountability.
· Prepare and submit a comprehensive report to the government, proposing short-term and long-term revenue and reform measures, including restructuring of tax administration and changes in laws.
· Present a vision of tax system, both tax policy and administration, for Pakistan in the long term.
The Task Force will hold regular meetings and consultations with relevant stakeholders and experts to seek their input and feedback. The Task Force will also review the best practices and experiences of other countries in tax reforms and administration. The Task Force is expected to submit its report within six months.