There was a wide consensus among the managers, stakeholders and masters of CBR for urgent need of fundamental reforms in the tax administration of Pakistan.
The reasons for this realisation were basically the low percentage ratio of tax revenue to GDP and deficiency of resources to tackle social issues poverty, large population, health and education.
The various reports, for tax reforms emphasised the need for increased autonomy as the main theme for the restructuring of CBR.
The CBR after having a nod from the government for the strategy of reforms for the tax administration had an extensive workshops conducted amongst its workforce to determine the autonomy and its extent for restructured CBR.
The general consensus emerged that the workforce wanted to remain part of GoP but wanted total autonomy in deciding policies, such as remuneration's, working environments, conditions and training etc.
This was a wishful thinking and not very realistic approach. On the one side wanting to be part of GoP and still wanting no hindrance from the GoP for its policies.
The result is the pace of reform relating to a "living wage" level has not matched with other areas of restructuring and reforms.
The incentive to change, reform and restructure is a bit dampened as far as concerning human resources.
The CBR has achieved many milestones, for instance introduction of LTU and MTU, introduction of USAS, selection of cases for audit on risk-based criterion the streamlining of audit functions sales tax, selection of audits, performance reviews, training of auditors, release of imported goods in 48 hours on profile basis in Customs and introduction of post clearance audits.
The sales tax and income tax movement for integration has began.
Now, for CBR to maintain the pace of change partial autonomy is the most essential ingredient.
Let us examine what do we mean and expect, when we say partial autonomy. The words mean "the right of self-government", especially partial self-government. The workforce of CBR, I believe, should ask for a partial self-government.
The CBR, a Revenue Division under the Ministry of Finance, is involved in planning, monitoring and collecting taxes in the country. The taxes are required to run the country.
Therefore, the existence, survival and well-being of the country and its people are dependent upon the taxes collected.
Such an important function cannot in my opinion be made totally autonomous. One cannot risk the security, integrity and "salamaty" of the country.
Therefore, there is no argument for a complete autonomy. The CBR should continue to work as a government agency.
The case emerging now is a partial self-government, which shall accelerate and facilitate the process of re-organising, re-engineering and improving the working of CBR to achieve the desired goals.
Let us now deliberate on the issues which need to be addressed to, under the partial self-government doctrine.
The first is the Board-in-Council and its Chairman. The Board line members should be appointed for three years tenure, early transfer or change should only be made on performance or disciplinary issues.
The Chairman's position similarly, should be governed by the same rules. The Board-in-Council line member individually should be consulted in appointment of its Chairman.
This shall help the Board emerge as a team with its leader.
The CCFR should have a full-time independent Secretary, who should report to the C.C. monitor and be involved in the Board's functions to ensure policy matters' transparency, effectiveness and proper timely implementation of the decisions of CCFR and may act as a watch-dog for the CCFR.
The urgent matters may be decided by the secretary CCFR by a specifically written approval of the members of CCFR.
The CCFR should be able to decide all matters relating to CBR either by regular meeting or through the Secretary by special approval.
This partial autonomy shall go a long way in resolving the core issues and the desired changes initiated in re-organising the CBR shall give positive results in the very near future.
(The writer is a Member (Audit), Central Board of Revenue, and the views expressed are individual.)
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