The Federal Board of Revenue (FBR) is actively working on a long-term tax reforms programme with the objective of raising tax to GDP ratio up to 17 percent in the next five years.
It is learnt that FBR has chalked out the programme with the assistance of World Bank for implementation of reforms in the FBR and complete overhaul of the taxation system.
Under the programme, the tax to GDP ratio will be increased up to 17 percent by 2024 under a systematic approach through comprehensive reforms in FBR.
In this connection, a medium-term revenue framework would be implemented. Under the plan, the analysis of organisational structure, process, human resource and taxation laws was conducted, sources said.
Some of the reform measures implemented included issuance of notification of Tax Policy Unit, setting up of operational units for processing offshore data, notification of revised double tax agreement with Switzerland, setting up of currency declaration system and launch of advance passenger system, matrix for performance management of field formations, launch of a dedicated complaint management system for processing complaints against FBR staff, ICT-based retail monitoring system for textile and leather outlets, setting up of project management unit for early implementation of track & trace system for electronic monitoring of production in major sectors.
Other reform initiative included campaign against high net-worth individuals, setting up of dedicated tax benches in the Supreme Court of Pakistan/Lahore High Court, launch of tax mobilisation campaign for encouraging taxpayers to file returns and launch of DIRBS for controlling smuggling of mobile phone sets, etc.
With the help of the World Bank, the FBR has also conducted tax gap analysis identifying tax gaps in steel, cement and sugar sectors.
To ensure speedy implementation of reforms, a steering committee would be headed by finance minister or his representative for periodic monitoring and evaluation of the reforms.
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