The Federal Board of Revenue (FBR) has raised the issue of making it a guinea pig with Prime Minister Imran Khan as five entities are involved in bringing structural changes that has created more confusion in the top hierarchy.
The issue of various organisations working to bring reforms to the FBR was highlighted amid the search for a new FBR chairman, who will be the sixth chief in the past two years.
In recent days, the PM met with some potential candidates, including a grade-21 officer of the FBR, who might be promoted to grade-22 soon. The name of a former finance secretary, who is currently working with the present dispensation, is also being considered for the FBR’s top slot.
FBR’s Acting Chairman Javed Ghani raised the issue of multiple stakeholders working to change the FBR during a meeting held at the PM House last Thursday, sources told The Express Tribune. The meeting had been held to give a briefing to the premier on the reforms process.
The PM was told that currently five entities and individuals were working on the reform process, which included both civilian and military organisations as well as the World Bank, said the sources.
The International Monetary Fund (IMF) was also advising the FBR on reforms and its technical team was reaching Pakistan in early September, said the sources.
The acting chairman requested the PM to designate a single entity as the approving authority for FBR reforms. The prime minister said the only person who was directly responsible for reforms in the FBR was Dr Abdul Hafeez Shaikh, said the sources.
Shaikh, Adviser to PM on Finance, on Monday authorised Dr Ishrat Husain to assist him in the automation of FBR, human resources management and integrity management of FBR officers, said the sources.
PM Imran had vowed to bring changes to the FBR and weed out corrupt officers. But during his first two years in power, he could not do much and even officers whose cases were ripe for dismissal have not been shown the door.
In recent weeks, the officers with tainted background have been posted on key posts in the FBR headquarters and field formations.
Owing to the involvement of multiple stakeholders, the FBR officers appear before one entity in the morning and second in the afternoon, said a senior FBR officer, who on Friday had meetings with two different entities on the same topic.
Some members of the FBR have taken advantage of the prevalent confusion and are directly reporting to various entities by bypassing the FBR’s acting chairman, said the sources.
The authority of the acting chairman is also undermined due to the involvement of a non-economic and non-institutional reforms adviser in the affairs of the FBR, said the sources.
The Express Tribune contacted the FBR chairman for his version but no response was received till filing of the story. Information Minister Shibli Faraz, who attended Thursday’s meeting, was also approached for version. Faraz was also not available for comments. On Thursday, the FBR had a meeting with the prime minister on reforms, on Friday it had a meeting with a civilian and a military institution. On Monday, the FBR chief gave presentation to the finance adviser.
The premier was informed about bringing automation changes in the FBR, integrity management and functional and organisational restructuring in the tax machinery. The PM was also briefed about re-organisation of Inland Revenue and Customs field formations.
The sources said that Dr Husain was critical about the performance of the tax machinery. He questioned about missing the tax collection targets during the last two consecutive years despite massive additional taxation of nearly Rs1 trillion in two years.
The sources said that the government’s focus was now on strengthening the existing FBR structure instead of experimenting with Pakistan Revenue Authority. But the military establishment was keen to have a new structure, they added.
Last month, Dr Husain had informed the federal cabinet that reforms in the FBR could not be completed before December this year. Dr Husain has proposed an eight-member FBR board against the existing strength of 13. It has also been proposed that the FBR may be given financial autonomy.
In early 2019, the federal cabinet had decided to separate the FBR’s tax policy board. But the decision could not be implemented. It was decided on Monday that the Tax Policy Board will be activated to separate policy from operations.
Meanwhile, the FBR on Monday also notified to reduce sales tax rate at import of sugar to 1% and withholding tax rate to 0.5% to reduce the overall cost of imported sugar. The decision has been taken to import 300,000 metric tons of sugar after exporting 1.1 million metric tons.
Published in The Express Tribune, August 25th, 2020.
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It's highly deplorable that the issue of reforms in FBR/CBR is continued since last 30 years without any positive progress. FBR turned in such a laboratory in which every expert having his own diagnosis but astonishingly he himself change the cure after few months. What an irony. 😑