New body planned for widening tax net

ISLAMABAD: In the wake of the failure of the Federal Board of Revenue (FBR)  efforts to increase the tax net, the federal government has decided to institute the formation of a separate autonomous organisation named the Directorate General of Broadening the Tax Net.

The proposed organisation will take measures for broadening the tax base and increasing the tax-to-GDP ratio to levels comparable with other developing countries.

According to sources, a draft has been prepared for the formation of such an organisation which will soon be sent to the prime minister for approval. The draft will make its way to the prime minister through the ministry of finance.

The head of the Directorate General of Broadening the Tax Net will be a Grade 21 commissioned officer, who will report directly to the chairman of the FBR, sources added.

Sources said that the decision to create such an organisation was taken after the failure of the now extinct Central Board of Revenue (CBR) and the current FBR to widen the tax base and the tax net. Special cells had been formed by the FBR to widen the tax net, but they had proved unsuccessful as well.

Published in The Express Tribune, August 20^th, 2010.