Islamabad, September 30, 2023 – Pakistan has established a high-powered task force with the aim of formulating substantial tax reforms in the country. A notification issued by the Federal Board of Revenue (FBR) on Saturday detailed the composition and objectives of this task force.
Caretaker Finance Minister Dr. Shamshad Akhtar has been appointed as the Chairperson of the task force. Other members include Dr. Manzoor Ahmed, Dr. Musharraf R Cyan, Amanullah Amer, Aamir Ijaz Khan, Khalid Mahmood, and FBR Chairman Malik Amjad Zubair Tiwana. Ardsher Saleem Tariq, Member (Reforms and Modernization, FBR, has been nominated as the secretary to the task force.
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The task force has been assigned specific Terms of Reference (TORs) to guide its activities, which are centered around the development of proposals and measures to enhance the ease of tax payment. These TORs include:
1. Proposing an implementation plan for separating revenue collection and tax policy.
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2. Reviewing FBR tax collection data, analyzing tax system performance indicators, and identifying areas for revenue performance improvement.
3. Assessing ongoing tax reforms and their alignment with national policies and objectives.
4. Examining tax evasion, smuggling, corrupt practices, and other tax-related issues and proposing countermeasures.
5. Identifying structural reforms for tax administration, human resource requirements, grievance mechanisms, incentive alignment for tax collection, and other areas for improved efficiency.
6. Reviewing collection mechanisms for sales tax, income taxes, import assessments, and online tax systems.
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7. Identifying hurdles and bottlenecks in tax collection and proposing technology-based solutions.
8. Analyzing tax policy measures to enhance economic efficiency, equity, and tax base.
9. Examining government tax expenditures and proposing a mechanism for cost-benefit analysis of tax exemptions.
10. Recommending the use of information technology for tax compliance, enforcement, base broadening, and transparency.
11. Preparing a comprehensive report focusing on revenue and reform measures, including restructuring of tax administration and changes in laws.
12. Presenting a long-term vision for Pakistan’s tax system, encompassing both tax policy and administration.
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The task force is authorized to interact with stakeholders, form sub-groups, and co-opt additional members with the approval of the Finance Minister or engage experts as needed. It is required to submit its recommendations within two weeks.
This initiative represents a significant step toward addressing taxation challenges and enhancing the efficiency and transparency of Pakistan’s tax system.
