IMF seeks details of taxation measures

To ascertain the impact of taxation policy, the International Monetary Fund (IMF) has asked the Government of Pakistan to provide details of taxation measures and initiatives taken in the Budget 2004-05, for an objective ninth review under the Poverty Reduction and Growth Facility (PRGF).
IMF resident representative in Pakistan has also specifically asked for providing a detailed list of changes made in the tax policy in the Budget 2004-05.
Sources told Business Recorder here on Thursday that the IMF staff mission due in the last week of August has sought updated data pertaining to duties and taxes, audit and refund for evaluating progress made by the tax authorities.
The IMF has sought background information on the performance of customs duty, excise and income tax during 2003-04.
Other details include total number of registered taxpayers and general sales tax (GST) collection, including monthly data on sales tax, customs duty, direct taxes and excise duty, refund positions and number of audits completed.
The IMF mission has also asked the authorities to provide a list of new and renewed subsidies at the federal and provincial levels and possible budgetary impact of these subsidies.
The CBR had already issued simplified Sales Tax Refund Rules to ensure prompt payment of sales tax refund making procedure less cumbersome for exporters with clean slate.
The IMF has also sought details regarding progress on the CBR reform programme. In this connection, speedy replication of large taxpayer units (LTUs), medium taxpayers units (MTUs) and model tax offices are on top of the agenda of reform programme.
Speedy clearance of imported consignments and effective implementation of human resource strategy within the tax machinery has also shown significant improvement.
The CBR has taken a number of important steps for automation of data and minimising interaction between the tax officials and taxpayers.
Under the reforms, the audit function would be strengthened through independent quality reviews and audit parameters be imbedded in the Information Management System to identify returns/filings for further scrutiny.
The CBR is implementing the Tax Reform Implementation Plan or strategy for revamping the tax machinery.