FBR, DFID join hands to improve tax system
MoU will help undertake tax reforms, increase collection.
ISLAMABAD:
The Federal Board of Revenue (FBR) and UK Department for International Development (DFID) signed a memorandum of understanding (MoU) on Thursday to improve the taxation system in Pakistan.
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.
The Federal Board of Revenue (FBR) and UK Department for International Development (DFID) signed a memorandum of understanding (MoU) on Thursday to improve the taxation system in Pakistan.
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.