In the Current Financial Year FBR to focus on enforcement, Audit and Identifying new Tax Payers
A Chief Commissioner’s Conference was held under the Chair of Secretary Revenue Division on 4th August, 2011. It was decided in the meeting that the current financial year would focus on enforcement, audit and bringing new taxpayer in the Tax Net. In this context the following important decisions were taken:-
(i) Revenue estimation to be an interactive exercise involving the Chief Commissioners and the FBR beginning with the current financial year. The Chief Commissioner shall prepare their revenue estimates based on rate of inflation, rate of economic growth and their efforts in enforcement, demand creation, audits, and bringing new taxpayers in the net. These estimates shall be reviewed in the FBR headquarters and revenue estimates for the current financial year shall be finalized thereafter. Following other decisions were taken:-
I. Reporting mechanisms to be strengthened at Head Quarter level.
II. Maximum efforts would be directed towards collection of arrears.
III. The collection of withholding tax by withholding agents would be monitored and reported on a monthly basis.
IV. Broadening of tax base by bringing 700,000 new tax payers in the tax net would be accelerated and reviewed every month.
V. Technology shall be upgraded to eliminate illegal inputs and illegal refunds in the Sales Tax system.
VI. It was clarified that under the reformed structure of FBR, no separate post of Member Sales Tax was under consideration.
VII. Long due promotions in Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) would be pursued with the Establishment Division and early convening of the Central Selection Board would be requested.
VIII. The delegation of powers of posting and transfers in FBR would be reviewed in a special meeting of Board-in-Council.
IX. Recommendations would be made to the Government to reform the cadre structure of IRS and PCS, so that promotion pyramid is balanced and positions are available at the highest grade (BS-22) to incentivize the two services.
The decision of the last Chief Commissioners meeting were reviewed by Member (IR). A committee was constituted to initiate work force rationalization and resolve jurisdiction issues of LTUs/RTOs. This committee shall comprise Member (IR), DG(HR), Mr. Nadeem Dar and Mr. Iqbal, Chief Commissioner. All Chief Commissioners were directed to prepare themselves soundly for attending the audit paras and attending to PAC observations with respect and competence. Post refund audit for improvement of ERS would be initiated in FBR. Training in post-refund audit shall also be strengthened. Data warehouse shall be developed in FBR for improving enforcement and audit on a scientific basis.