NA body briefed on FBR reforms, way forward to improve taxes

ISLAMABAD: The National Assembly’s Standing Committee on Finance and Revenue was briefed on Wednesday about the reforms initiative adopted by the Federal Board of Revenue (FBR) and way forward for improvement of taxation system in the country.

Adviser to Prime Minister on Reforms, Dr. Ishrat Hussain, apprised the Committee about the salient features of Reforms.

He said that International Monitoring Funds (IMF) had suggested some reforms to the government for obtaining its revenue targets.

He was of the firm view that Automation system and Digitalization process would minimize the interaction between taxpayers and tax collectors.

He also elaborated the functional and organization restructuring including improvement human resources, policy management, integrity management and reducing withholding tax and expenditure scope.

However, the members of the committee expressed their apprehensions regarding delay in outcome of the reforms and were of the opinion that a time line in this respect must be defined.

FBR Chairman, briefed the committee about details of reform’s framework and its expected results.

He said the board had decided to implement the weeding out deadwood through early retirement rules, dismissal corrupt staff through efficiency and discipline rules.

He further stated that FBR was focusing on alternate dispute resolution mechanism for smooth functioning of the business.

Member Custom, informed that FBR took necessary measures for trade facilitation through operational activities.

The Committee also discussed the Pakistan Single Window (PSW) Bill, 2020 (Government Bill) and was briefed by Project Director about the requirement of this legislation.

He said that PSW was a facility which would allow the parties involved in Trade and Transport to lodge standardized information and documents with a single entry point to fulfill of all imports, exports and transit related regularity needs.

He also apprised the Committee that PSW was finalized with consensus of the stakeholders while providing legal basis for the approved functional, operational, governance and revenue model.

He added that PSW will help to unlock Pakistan’s potential as the regional hub and trade & transit by simplifying harmonizing and automating regularity controls.

After detailed discussion, the Committee unanimously recommended that the said Bill may be passed by the National Assembly as reported by the Committee.

Meanwhile, Dr. Muhammad Ishfaq, Member FBR informed the Committee about the updated status with regard to Income Tax and Sales Tax Refunds.

The stakeholders were also present in the meeting. They expressed their concerns on the problems being faced by the Exporters due to FASTER SYSTEM and its technical issues.

The Committee expressed its grave concern about the long time pending claims of Income Tax since 2007 to 2019, and directed the FBR for preparing a comprehensive briefing in this respect.

Dr. Muhammad Ishfaq briefed the committee about the measures taken by the FBR for resolving of problems and way forward.

The committee recommended that FBR should arrange a meeting with stakeholder/exporters in this regard.