The Federal Board of Revenue (FBR) Chairman, Salman Siddique, has informed the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) that an interactive method would be adopted for working out revenue estimates for 2011-12, instead of traditional top-down approach for fixation of revenue collection targets.
In this regard, the FBR has issued instructions to the field formations on Friday to determine the revenue estimates for 2011-12. According to FBR instructions, the FBR Chairman has directed all Chief Commissioners to fathom the real revenue potential of their units based upon net collection of previous year, forecasting likely demand creation through audit, arrears collection, broadening of tax base, audit of withholding taxes, etc.
They should also keep in mind the factors of economy eg as 12 percent inflation and 4.5 percent GDP growth. Such estimates may be shared with Member IR within a week, who will then arrive at realistic estimates, in consultation with FBR Member Strategic Planning and Statistics (SP&S).
The FBR Chairman has directed that all field formations should suggest their strategies for broadening of tax bases, audit plan, recovery of arrears, monitoring of withholding taxes etc in two weeks to the Board. These plans will be finalised with mutual consultation of FBR Member Inland Revenue (IR), DG (I & I) and other relevant Members.
The FBR Chairman also suggested introducing a prize scheme to incentivise sales tax compliance. A proposal already available with PRAL was discussed. It was decided that the proposal will be fine -tuned/reviewed within two weeks.
During the last Chief Commissioners conference, the FBR Chairman had said that he had requested Secretary Establishment to arrange for meeting of the Central Selection Board (SSB) for considering overdue promotions of FBR officers. Matters pertaining to seniority disputes will be sorted out quickly. It was also decided that a case for creation of BS-22 posts for IRS be moved separately. An effort should be made to trace out the existing post of Chairman, Income Tax Settlement Commission (BS-22).
In response to apprehensions expressed by Member IR regarding attempts by certain elements for division of IRS, the Chairman assured that IRS will remain intact. He further assured the orders issued on April, 2 2011 regarding distribution of powers will be reviewed to empower Members enabling them to manage their responsibility effectively.
The shortage of officials in field formations shall be reported to the Board within a week. All Chief Commissioners will furnish their requirements/proposals based upon DG HR Plan. A committee will then consider such proposals to rationalise the workforce on the basis of work load, duration of stay and qualification/training of officers and determine the criteria for distributing cases among LTUs/RTOs, the FBR instructions added.
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