Islamabad: The Federal Board of Revenue (FBR) has set internal deadlines to prepare the outline of the reforms – aimed at reorienting the taxation authority’s structure framework – till January 2020; to enable their implementation by July 2020, a news source reported.
For this purpose, the federal government recently set up a steering committee, with FBR Chairman Shabbar Zaidi serving as the body’s chief. Further, the taxation authority has formed four sub-committees up till now to facilitate the process.
At the moment, the process is confusing for those involved since suggestions for changes are coming from three different directions. The World Bank funded operation suggested reforms within a timeline to be eligible for a USD 400 million loan, while one of the terms for IMF’s Extended Fund Facility loan package was bringing about reforms in tax collection.
Previously, Prime Minister (PM) Imran Khan had directed the FBR to commence with the overhaul process. Now the committees need to come together and bring about reforms keeping in mind all the various stakeholders and institutions involved and their specific directives.
Members are currently debating whether the reforms should be implemented from top-down or from bottom to top. They are also deliberating whether they require the need of professionals, who will then need to be hired.
