Tax reforms bear fruits

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The government’s reforms to mobilise tax revenue are bearing fruits as the Federal Board of Revenue (FBR) has succeeded in achieving 90 per cent of tax collection target for the first quarter of the ongoing fiscal year as Rs920 billion have been collected in taxes thus far.
The tax reforms introduced by the government enhanced domestic tax revenue by 25 per cent. A fair tax collection system plays a central role in economic growth. There is dire need for bringing tax evaders to book to make Pakistan stand on its feet.
It is incumbent on commercial users to get registered under Income tax laws. The FBR is working diligently to increase the number of those registered under the income tax net. An aggressive campaign will kick-start from October 15 to reap desired results. Administrative reforms aimed at transforming income tax organization on functional lines, re-engineering of manual processes of all taxes with the aim to reduce face to face contact between taxpayers and tax collectors, increasing effectiveness of FBR and improve skills and integrity of the workforce.
The FBR is actively working on the risk-based audit system. Under the guidance of the consultants of the Tax Accelerating Growth and Reform (TAGR) project, the FBR is in the process of developing risk-based audit selection software to be finalized by February 2020. The prototype of the software for developing risk-based audit selection system is under process.
Under the risk-based audit programme, the FBR is expected to establish Compliance Wing for selection of cases for audit under the restructuring of the FBR Audit Wing. Under the restructuring plan of FBR Audit Wing, the Audit Wing would be equipped enough to conduct tax audits of the registered persons.
The new risk based audit strategy would cover 15 comprehensive field audits of large taxpayers selected by the risk-based selection tools. The number of comprehensive field audits of large taxpayers would be increased from 25 to 45 per year.

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