The Federal Board of Revenue (FBR) is going to sign an agreement with Nadra to access national database for broadening of tax base. This was stated by FBR Chairman Salman Siddique during his brief visit to Recorder House along with Member Customs Munir Qureshi here on Saturday.
He said the Memorandum of Understanding (MoU) in this regard would be signed on January 18, 2011 (Tuesday), adding that the scientific methodology would be adopted to identify potential taxpayers from national database. He said that everything has both negative and positive aspects including VAT/Reformed GST but it could not be implemented because of unfavourable political scenario.
He was optimistic about the formation of the constitutional committee, saying that the leadership from government and opposition sides are working closely for adoption of a National Economic Agenda and hoped that all other parties would also be taken on board to sort out economic problems. Replying to a question, he opined that politicians might have realised that the country is facing severe economic turmoil, hence they are now busy finding the way out.
He said there is no short-term measure for economic revival; we need to chalk out at least two-year strategy for improving expenditure management and resource mobilisation. The FBR chief said the enforcement is not the only way to enhance the revenue collection; there is a need to eliminate decrepit bureaucratic and political practices and make some legislative changes to bring new ideas in the policies.
Salman said the Sindh government could have generated more revenue on account of motor-vehicle tax by accepting the proposal of the FBR to attach the said tax with the sale of POL products. Although the revenue percentage of the FBR was improved, it would not make any difference unless the substantial collection would be made. The revenue body can do more than Rs 1604 billion by plugging revenue leakages, the FBR chief said.
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