The power to decide taxation policies should never have belonged to the FBR in the first place. PHOTO: AFP
On the eve of the completion of Pakistan’s first democratic transfer of power, it is worth reminding ourselves why we bother to elect our governments in the first place: the government has the power to collect taxes from us and then use the money thus collected to provide us with services. We elect our representatives to make sure that our voices are heard when it comes to decisions of both taxation and distribution. So, it is somewhat refreshing that the bureaucrats at the Federal Board of Revenue (FBR) have decided that they are finally willing to relinquish the power of deciding taxation policy to parliament.
We say this with some degree of irony, because that power should never have belonged to the FBR in the first place. It is one of the most gaping oversights in the transition to democracy: we seem to have forgotten that our military dictators decided to empower civil servants at the expense of elected representatives by giving the FBR the power to arbitrarily change the rates of taxation on virtually whomever they like, whenever they like and with very little parliamentary control over what they do. In essence, the money bill passed by the National Assembly can be completely undone in the corner offices across the street at the FBR headquarters.
At a pre-budget seminar organised by Express News, senior FBR officials generously offered to give this power back to parliament. We urge the incoming members of the National Assembly to take up the bureaucrats on their so-called offer and eliminate this power permanently for the FBR, making taxation policy the exclusive preserve of the elected representatives of the people. The evolution of our democracy will remain incomplete without this measure.
Published in The Express Tribune, June 3rd, 2013.
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@Bilal Hasham: I agree with your assessment. However, maybe the transfer of responsibility for tax collection from FBR to the Parliament will shift responsibility and also, eventually, the blame for good or bad tax collection. This is in line with holding our elected representatives 'accountable' for their performance, thereby leaving them unable to scapegoat an institution for their failures. This can be achieved with a tough parliamentary watchdog overseeing the parliament's intentions and actions to check for any unlawful behaviour.
Regardless, power of taxation remains with FBR or the Parliament,the feudal class sitting in the parliament will never let themselves be taxed.However,collection of tax from other tax evaders is the sole responsibility of the FBR which they should perform ruthlessly.
Mr. Editor the whole issue is the very Public Representatives dont want the people to be taxed and evade taxes themsleves. Why do you think the Tax Structure in Pakistan is so skewed and a lot of people and businesses (including agriculture) are intentionally kept outside tax net. It is not because of the bureaucrats sitting in FBR, they just follow the policy and directions given by the Public Representatives sitting in the Cabinet. So basically it is a collusion between elected politicians and bureaucrats which has really played havoc with revenue collection. Nonetheless, I agree with your recommendation but you have taken a very simplistic view which in my opinion is not the 'root cause' of the problem and will not solve the issue, instead I fear it will further aggravate it.