Cost of inefficiency: ‘Pakistan could collect Rs5t in taxes’
Pakistan could collect an estimated Rs5 trillion in taxes every year but due to flaws in the collection system, the Federal Board of Revenue (FBR) is able to collect Rs1.5 to 1.6 trillion, said Federal Tax Ombudsman Dr Shoaib Suddle while addressing income tax officers and FBR officials here on Tuesday.
The ombudsman admitted that officials were not taking action against influential tax evaders but said efforts are underway to collect taxes from them.
“I do not hesitate to say that the system is not fair but efforts are being made to overcome the flaws and weaknesses,” he said.
‘Missing’ containers
While commenting over the container scam, Suddle said that the FBR worked on the case for over three months and produced a comprehensive report.
Earlier, an inquiry committee of the Federal Board of Revenue revealed that the
national exchequer lost as much as Rs50 billion in unpaid duties, tax evasion and pilferage in Afghan transit trade goods.
The panel, formed under Supreme Court’s directives, found that traders and revenue officials colluded in making 23,882 commercial containers “vanish” from Karachi port and avoided paying as much as Rs50 billion in duties and taxes.
“The number of missing containers is still rising,” Suddle said.
“While our prime duty is to collect revenue and maintain law and order, [the missing containers] is a serious issue because they could contain military equipment for coalition forces which can be used to destabilise the country,” he added.
Suddle said that there should not be transit trade because it reflects weakness in the system and that the country needs immediate reforms in this regard.
He said he was receiving complaints from taxpayers against some officials and said they would be held accountable if found guilty.
Published in The Express Tribune, July 27th, 2011.
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I agree with the above. The figures appearing in the article are imaginary figures when compare with real collection. Further I dont think there is any flaw in the collection system but I think there is no collection system with the FBRs bosses. They just see their personal accounts statements and remain happy. Look at the life style enjoyed by the tax collectors in Pakistan.
Please get the tax payers profile from FBR of tax payers.
My guess is 100 companies pay over 75% of the direct tax.
FBR should make public Tax payers profile based in Income/tax paid slabs.
Also FBR should share with public,the cost of running FBR units and salaries of staff
This is very easy to give a figure which comes from the moon like 5 trillion. Is there any way in the mind of the Dr. to achieve this goal. Moreover, I think that the Dr. must have the number of direct tax payers to whom FBR is able to collect tax, excluding salaried persons, listed companies, petrolium companies etc. The number will automatically describe how efficient the FBR bosses are. Some one rightly pointed out that if there is a will there is a way. But whether anyone think that there is a will.
Dr Suddle , civil bureaucrate and police officer who holds doctrate in crimnology does not appear to gel in here with matters that are not his professional expertise, i believe
Does the government and its intituitions respect and facilitate me as a TAX PAYER?
..."and efforts are being made to overcome flaws and weaknesses".
I think I am going to be sick.
Give out Tax Collection to private sector by tender. This was done for Chungi tax,toll tax and is yielding results. Love to see the Custom,Income Tax officers going on strike............
Deal with Corrupt Politicians and Public Servants as they do in China i.e. Execute them.
Give tax collection duties on an experimental, pilot basis to the private sector.
If there is a will there is a way. corrupt will continue siphone off national money. One simple step to net such culprits as practice by most of the countries of the world is to asses their assets that how they were able to buy expensive houses, land, vehicles and living a life beyond there earnings. it is quite simple but we need.....................