Agility, the software developer that developed and installed the Pakistan Automated Customers Clearing System (PaCCS) in 2005 has once again threatened to shut down operations.
The bone of contention between Agility and FBR has been the payment of outstanding dues that are owed to the developer for the installation and maintenance of its system which is used at container terminals in the country.
In previous negotiations, both former chairman FBR Abdullah Yusuf and current Chairman Salman Siddique had, at different times, assured that differences would be resolved and the dues owed to the company would be paid to ensure that the automated system remains in place.
However, despite these promises FBR has dragged its feet on the issue. Moreover, many officials in the customs department as well as Pakistan Revenue Automation Limited (PRAL) are opposed to the use of PaCCS.
These critics claim that the PaCCS system is ineffective in catching discrepancies and mis-declarations.
However, the Auditor Generals annual report for FY10 tells a different tale. According to that document, irregularities under the head of customs have been significantly lower than those in other departments, since the introduction of PaCCS in customs.
Stakeholders, including clearing agents and importers, also support PaCCS as it cuts out direct contact from customs authorities and allows users to follow their shipments electronically.
Evidence suggests that the PaCCS software is in fact effective and efficient. However, if FBR officials are certain that the system has major flaws; it is somehow puzzling that they have made no efforts to develop a better alternative.
In fact, PRAL which was created for the exclusive purpose of automating revenue collection has done little besides hiring an exorbitant number of employees and criticising other solutions.
FBRs revenue collection target of Rs1,952 billion is already being contested as being overly optimistic. If the board hopes to accomplish this target, it will do well to automate its processes further to plug leakages and overcome the trust deficit between tax payers and collectors.
The current chairman is well-respected for his can-do attitude and progressive ideas. One hopes that he can overcome the internal ramblings in FBR to seek a solution to this dragging debacle in the best national interest.
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