A meeting of the Economic Advisory Council's sub-group on fiscal sector has emphasised that information technology can be more useful in bringing more and more people into tax net and spotting tax evaders. The sub-groups' meetings on National Financial Inclusion Strategy (NFIS) and fiscal sector chaired by Finance Minister Asad Umar discussed measures to fix crippling tax system of Pakistan by recommending policy measures targeting two major areas, tax administration and tax policy.
The meeting was attended by all major stakeholders/members of the sub-group from Ministry of Finance, State Bank of Pakistan, Federal Board of Revenue and Securities and Exchange Commission of Pakistan. Governor State Bank of Pakistan, Tariq Bajwa presented National Financial Inclusion Strategy to improve quality of and increase access to financial services in Pakistan.
He outlined targets and necessitating policy actions to be taken at various levels in coming years to achieve the targets. Discussion revolved around fast-tracking the digitisation of financial services to reach out larger number of consumers, small and medium-sized businesses and newly emerging entrepreneurs throughout country.
The finance minister appreciated the National Financial Inclusion Strategy and emphasised on diligently time-lining the goals, targets and actions to be taken, and cautioned against delaying the implementation process of the strategy. In the fiscal policy sub-group meeting, the FBR representatives made a presentation on the problems currently ailing tax administration system in Pakistan, and ad hocism of tax policy. It was noted that these issues consequently lead to low tax collection, contributing to massive fiscal imbalances. The coherent and continuous coordination among provinces and between the federal government and the provincial governments is important to avoid incidence of double-taxation, it was stressed.
The finance minister appreciated the work done by the groups which was assisted by the senior FBR officers and directed for setting timelines to various administrative and policy reforms so that the huge fiscal burden on the economy be reduced to minimal possible level and the government might get much needed fiscal space.
Meanwhile, during the meeting the chairman FBR informed the minister that the Board is starting an awareness campaign to let the people know how their tax money is being utilised to uphold the spirit of transparency and easing the relations between the taxpayers and the FBR.
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