The Central Board of Revenue (CBR) has decided to thoroughly review the tax policies of developing countries to increase tax-GDP ratio, with the assistance of World Bank (WB). Official sources told Business Recorder on Wednesday that the issue came to the limelight during last Board-in-Council meeting.
The council observed that the tax-GDP ratio in Pakistan has registered a decline this year due to increase in the volume of gross domestic product (GDP).
CBR Chairman Abdullah Yusuf stressed the need of gathering information from other developing countries to formulate policies to raise the tax-GDP ratio.
In this regard, the CBR has requested World Bank officials to assist in securing this information. The Board-in-Council was informed that the revised format of 'Bank Guarantee' had been sent to Member, Legal, for vetting. The new form would be issued after fulfilment of legal formalities.
The council also decided to approach Interior Ministry to access the passengers' data of Federal Investigation Agency (FIA), as the agency had refused to give information to the tax officials.
The CBR has compiled 'Passengers Information System' (PIS) to have advance information about incoming/outgoing passengers. The software has been developed and presented before the tax officials, whereas FIA has refused to give this information. The council decided that Secretary Interior would be requested to issue necessary instructions to FIA.
The Board-in-Council also decided that non-operative bonded warehouses should be closed, as there is no need of such warehouses.
The council has also abolished the Enquiry Wing of CBR, Islamabad, including its sub-offices at Karachi and Lahore.
The Board was informed that Islamic Ideology Council had allowed export of seized liquor and the 'export proceeds' could be spent on the welfare of minorities in Pakistan. In this regard, the CBR will approach Interior Ministry for further guidance on the issue.
The Board-in-Council was informed that Federal Anti-Smuggling co-ordination Committee has given certain recommendations to the CBR, as most of them have already been implemented by the tax authorities.
-First, joint check-posts to be set up at selected check-points in border areas as well as on inter-provincial boundaries;
-Second, installation of scanners at the joint check posts;
-Third, reward for anti-smuggling agencies;
-Fourth, Ministry of Interior to consider deleting provisions relating to Customs Act, 1969 from the Schedule to the FIA Act, 1975;
-Fifth, the Excise and Taxation Department not to be allowed to function as anti-smuggling agency;
-Sixth, the CBR to allow the law enforcement agencies to retain the serviceable arms and ammunition for use in anti-smuggling and other law enforcement operations, and also CBR to hand over the tampered vehicles to law enforcement agencies at a negotiated price.
The Board was informed that the average clearance time has improved under the CARE project, as 26 consignments were cleared in less than one hour, against 23 previously. Similarly, 22 consignments were cleared within 1-2 hours, against 20. There is increase in the number of filing of 'Goods Declaration' (GD Form).
The computerised program for speedy payment of duty drawback has been finalised and electronic transmission of payment through banks will be made after finalising modalities with the Banking Council.
It has been decided to re-organise the Directorate of Research and Statistics (DRS) and Member, Fiscal Research and Statistics (FRS), has started working on re-organisation of the DRS on functional lines.
On the organisational structure of CBR, the CBR approved new positions for various Wings of CBR.
It also decided that the hiring process through Internal Job Posting needs revamping to bring in more transparency and merit for hiring of competent officers and staff for CBR's special pay positions. It was agreed that wider perspective would be provided for selection of officers required for CBR functions from other services groups, instead of limited number of officers' panels.
It was decided that those offices/officials of other Departments/Autonomous Bodies posted on deputation in re-engineered Wings will have to opt either for special allowance or 20 percent deputation allowance. Two separate allowances shall noy be admissible for such deputationists.
The Board decided that in the next phase, CBR HRM Wing would process the approvals for payment of special allowance to the identified positions of CBR (Headquarters) Line functions and Directorates of Training, both Customs and Income Tax.
The Board decided that shortage of typing/computer staff would be met out of the eligible officials ie Superintendents, Assistants etc, through qualifying test.
Chief of Human Resource Management (HRM) made a concise presentation on the proposed 'Unified Reward Rules'. She said that the proposed 'Unified Reward Rules' had been formulated by a committee headed by Khawaja. Tanveer Ahmad, the then Collector, LTU, Karachi.
The committee, while formulating the Revised Rules, kept in view the strong objections of IMF against reward for detection and recommendations contained in the strategy paper on 'Reform of CBR'.
Moreover, the committee also considered the Reward Rules of India, South Korea and Japan while formulating their recommendations.
The draft rules were circulated among the member of the Board-in-Council and their suggestions have been incorporated. She then presented the revised Reward Rules for approval of the Board-in-Council.
The Board-in-Council discussed various aspects of the Unified Reward Rules. Member (Customs) was of the view that the draft Reward Rules presented by Customs Wing may be approved. The Chairman noted that the proposed Unified Reward Rules might be formulated in line with the Tax Reform Strategy. It was also decided that the proposed Reward Rules of Customs Wing might be re-visited.
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