ISLAMABAD: Finance Minister Ishaq Dar has constituted a high powered tax commission for identifying bottlenecks in tax system and recommending pro-economic policies.
The Federal Board of Revenue (FBR) issued a notification on Thursday regarding constitution of Reforms and Resource Mobilization Commission (RRMC).
The commission comprising following members:
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01. Ashfaq Tola, Chairman of the commission
02. Asif Haroon
03. Haider Ali Patel
04. Abdul Qadir Memon
05. Dr. Veqar Ahmed
06. Saqib Sherazi
07. Ghazanfar Bilour
08. President of FPCCI or his nominee
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09. President Pakistan Tax Bar Association
10. Chairman FBR
11. Member (Reforms & Modernization) FBR Secretary to the Commission
Subject Experts included:
12. Nisar Muhammad-Customs
13. Dr. Muhammad Iqbal-Income Tax
14. Abdul Hameed Memon-Sales Tax
According to Terms of Reference (TORs), the commission will advise and made recommendations to the finance minister on the following areas:
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(i) To review existing revenue policies, evaluate FBR data and macro level, and identify initiatives/measures/policies for resource mobilization, ease of doing business and pro-economic growth.
(ii) To identify issues/difficulties/snags/risks of the existing tax system and recommend remedial measures.
(iii) To review the budget proposals, evaluate their consequences on business, and advise the finance minister on practical aspects of budget proposals.
(iv) To review the proposed amendments in Finance Bill and make recommendations to the finance minister on implications of proposed amendments on businesses.
(v) To review the complexities of tax legislation and recommend simplification e.g. different compliance level for different categories of taxpayers.
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(vi) To suggest action plan to curb the parallel economy and to make recommendations for improving financial inclusion in the documented system.
(vii) To review and recommend a robust IT system on modern lines and upgrade existing IT facilities to maximize tax compliance, enforcement, broaden the tax base and provide taxpayer facilitation.
(viii) To make recommendations for minimizing taxpayer/tax collector interaction and maximizing trust between the FBR and the taxpayers.
(ix) To revie and advise restructuring of FBR from the following perspectives:
a. To evaluate the possibility of making FBR autonomous.
b. To evaluate the possibility of establishing and independent audit system.
c. To evaluate the possibility of establishing a separate legal department.
(x) To make recommendations on harmonization of GDT between the Federation and provinces and development of a single portal for filing of sales tax returns.
(xi) Any other related matter.
According to the notification, the commission:
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(i) Shall be independent and headed by a full-time chairman; its chairman shall report directly to the finance minister.
(ii) May interact with stakeholders and form sub-group, and evaluate their proposals for the federal budget.
(iii) May co-opt any other person with the prior approval of the finance minister.
(iv) May avail services of any expert (s) on need basis.
(v) Will have a full-time secretariat at FBR Headquarter, and FBR shall provide logistic and human resource support to the commission.
(vi) Shall take decision by majority vote of all members.
(vii) Shall submit its first report by mid of April 2023.
