ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Sheikh has stated that tax transparency and exchange of information (EOI) are powerful tools to enhance tax compliance. The adviser said this, while addressing the Plenary Meeting of the Global Forum on "Transparency and Exchange of Information for Tax Purposes 2020", organised by the OECD.

He added that Pakistan had achieved important milestones in transparency and exchange of information, and appreciated the technical support extended by the Global Forum and the UK Government, which was instrumental in implementing the Common Reporting Standard (CRS).

At present, Pakistan is one of the few developing countries among the early adopters of the CRS, and began exchanging data with partner jurisdictions in less than two years, he added.

Pakistan, he said was firmly committed to fighting tax evasion and other illicit financial flows, and needed more international cooperation for cross-border assistance in tax recovery.

The adviser also briefed the forum about the negative impact of the Covid-19 pandemic and measures taken by the government to mitigate sufferings of the vulnerable groups.

During the Covid-19, the government has introduced "smart lockdown" to contain the spread of the disease with the need to keep the economy functional. The smart lockdown approach by the government was acknowledged worldwide, he said and added that it allowed many businesses to re-open or continue operations on limited scale to lessen the adverse economic impact during testing times.

The government gave cash payments to 15 million families under the "Ehsaas Emergency Cash Payments" added the adviser. Amid the Covid-19, he further stated the government had taken several initiatives for economic recovery which included; (i) a relief package for small and medium enterprises (SMEs); (ii) a special package was announced to boost construction sector, which included amnesty scheme, tax exemption, and Rs33 billion subsidy to stimulate economic growth.

Pakistan has registered an upward trend in foreign remittances and foreign direct investment (FDI) during the first quarter of fiscal year 2020-21, the adviser maintained.

He further stated that the government was firmly committed to correct fundamentals of the economy through effective policy making, and targeted reforms with the objective to achieve sustainable economic growth.

Copyright Business Recorder, 2020