The World Bank (WB) mid-term review mission and the Federal Board of Revenue (FBR) are likely to discuss the "voluntary severance scheme" (VSS) finalised for 24,000 tax employees, on the pattern of golden handshake packages offered by banks and financial institutions.
Sources told Business Recorder on Wednesday that the WB mission would review the Tax Administration Reforms Project (TARP) from August 20 to 31, 2007 at the board's headquarters. The bank wanted to examine the Golden Handshake scheme being finalised for the FBR employees. However, it depends on the tax authorities to share the modalities of the scheme with the mission. The scheme would be announced after obtaining approval of Prime Minister Shaukat Aziz.
Without disclosing the details of the package, sources said that the scheme has been finalised, taking into account the packages offered by banks. Sources admitted that the tax officials, who wanted to voluntarily leave the organisation, are expecting an extraordinary attractive package. It is a key feature of the scheme to offer 'sufficient financial incentives' for the tax officers at appropriate timing.
The WB midterm review mission would meet the FBR Chairman M Abdullah Yusuf and Members. The mission would also meet the Directors-General, Large Taxpayer Unit (LTU) and Regional Tax Office (RTO), Karachi. Sources said that the WB review mission would also visit the passenger facilitation centre at Wagha border, Lahore.
The mission would meet Project Director, Customs Administrative Reforms Project (CARE), Karachi, and Directors-General, Inspection and Internal Audit.
Sources said that TARP project manager Hugo Hanish and international audit expert would give separate presentations to the WB on reforms and National Audit Plan and Manual, respectively.
The board would brief the mission about the current pace of revenue collection, broadening of tax base, rollout plan of RTOs and Tax Management System (TMS) and all other reform initiatives like Pakistan Customs Computerised System (PACCS). The WB mission members are Shamsuddin Ahmed, senior financial sector specialist; Anjum Ahmed, senior private sector development specialist; Kasper Ritcher, senior economist; Asif Ali, senior procurement specialist; Hasan Masood Mirza, consultant; Amir Munir IT specialist; Furqan A Saleem, financial management specialist; Anwar Ali Bhatti, financial analyst; Imtiaz Ahmed Sheikh, team assistant and others.