DFID Pakistan head Richard Montgomery and FBR Chairman Tariq Bajwa inked the MoU. Federal Finance Minister Ishaq Dar and British High Commissioner to Pakistan Phillip Barton were present on the occasion.
Talking to the media, Dar said the agreement was designed to improve management in tax divisions, undertake reforms and enhance collection and tax-to-GDP ratio for socio-economic development in the country.
“As per the understanding, regular interaction will be held between the two organisations and the FBR will take benefit of the UK taxation system and technology,” he said. “The government is also considering taking benefit of Turkish system, which achieved a growth of 10% to 26% in the tax-to-GDP ratio.”
The finance minister said despite a call for not paying taxes to the government, the FBR managed to collect Rs319 billion in the first two months (July-August) of the current fiscal year, which was 14.5% higher than the collection of Rs279 billion in the same period of previous year.
Replying to a question, Dar said the government had for the first time initiated a process to bring back the country’s money stashed in Swiss banks. “We will try to speed up the process and if we succeed in bringing the money back, it will be a big success.”
Barton said following the signing of the MoU, Pakistan would be able to enhance its revenues by improving the system. “We were very impressed when the PML-N government, which came to power last year, showed a strong commitment to enhancing tax revenues and the tax-to-GDP ratio,” he added.
Published in The Express Tribune, September 19th, 2014.
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COMMENTS (4)
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DFID should understand that the Pakistani tax system is all corrupt and no relief is given to the people what so ever. Atleast, I avoid paying taxes to the best of my ability because my hard earned money is not meant for paying the Prime Minister Nawaz's luxury room rent of $8000 per night in US.
Just so people know agriculture is taxed by the provincial governments.
Well the agriculture tax is the bigest problem. It accounts for over 30% of GDP and remains untaxed an absolute shame!!!
It is not just a problem of nonpayers but our tax policy is seriously distorted. There is too much dependence on taxes on internstionl trade.