ISLAMABAD – The Federal Board of Revenue (FBR) of Pakistan has identified 152,201 Pakistani nationals with undeclared assets abroad, according to Mohammad Jehanzeb Khan, the Chairman of FBR.
This revelation was made during the inaugural meeting of the ‘FBR Policy Board,’ held under the FBR Act, 2007. The meeting, chaired by Finance Minister Asad Umar, aimed to discuss key initiatives and strategies for enhancing tax compliance and revenue collection.
Chairman Jehanzeb Khan provided a comprehensive overview of FBR’s recent efforts to improve its performance. Notable highlights included the separation of Tax Policy and Administration, the draft of the FBR Transformation Plan, ratification of the Swiss avoidance of double taxation treaty, electronic linkage of retailers with FBR, issuance of notices to 6,451 high net-worth non-filers (resulting in a revenue recovery of Rs245 million), identification of 4,961 potentially undeclared properties abroad, implementation of objective criteria performance management, and the establishment of the Integrity Management Unit.
The Policy Board, comprising Finance Minister Asad Umar, ex-officio members from key ministries, and nominated members in advisory capacity, deliberated on these initiatives. The nominated members included prominent figures such as Abdul Razak Dawood, Hammad Azhar, Senator Kauda Babar, Syed Javed (IT Professional), Usman Yousaf Mubeen (Chairman NADRA), and Abdullah Yousaf (former chairman FBR).
During the meeting, members commended the government’s decision to form the Policy Board and consult with non-governmental members to enhance the country’s tax system. The Finance Minister expressed appreciation for the collaborative approach and welcomed diverse perspectives for the improvement of the tax structure.
In response to the identified challenges, the Policy Board decided to involve the Senate Standing Committee on Law and Justice to review FBR laws where criminal investigation agencies have overlapping jurisdiction with FBR. This step aims to clarify the authority of FBR in such matters.
Chairman NADRA, Usman Yousaf Mubeen, received a directive to explore proposals for broadening the tax base using data available in the NADRA database. The suggestions will undergo a detailed review by the Policy Board for further action.
Abdullah Yousaf emphasized the need for “Systemization through Automation” to minimize harassment and discretionary powers. He was tasked with presenting a detailed overview of the audit and inspection system of FBR, proposing improvements that will be shared with the Ministry of State for Revenue before being presented to the Policy Board.
The Minister of State for Revenue expressed his desire for the FBR Policy Board to design Terms of Reference (ToRs) to bridge the gap between policy and administration. The Board decided to hold regular meetings on a quarterly basis, with the next meeting scheduled for mid-March, ensuring ongoing collaboration and strategic planning for the enhancement of Pakistan’s tax system.
