The Federal Board of Revenue (FBR) Wednesday reviewed in detail the timelines for the implementation of the tax reforms, automation, and other initiatives including the harmonization of sales tax under the World Bank-funded Raises Revenue Project.
Top officials exclusively told ProPakistani that an internal meeting of the FBR took place at the FBR Headquarters which was chaired by FBR Chairman Asim Ahmed and attended by senior members only. A presentation was also given to the FBR chairman on the status of the said project.
The World Bank-sponsored Reforms program ‘Pakistan Raises Revenue’, is a $400 million program for domestic resource mobilization through the automation of tax collection processes and the simplification of tax compliance procedures.
FBR members updated the chairman on the harmonization of sales tax across Pakistan, measures to raise the tax-to-GDP ratio, and widening the tax net. The project would assist in simplifying the tax regime and strengthening tax and customs administration. It will also support the FBR with technology and digital infrastructure and technical skills.
The FBR team indicated the areas where FBR and World Bank could achieve the agreed program deliverables through mutual efforts. FBR members further emphasized on avenues in which the program could be made more effective in achieving the overarching objectives of ensuring a sustainable increase in revenue.
According to the sources, the objective of the Raises Revenue Project for Pakistan is to contribute to a sustainable increase in domestic revenue by broadening the tax base and facilitating compliance.
The project is a five-year investment project financing (IPF) operation with disbursement-linked indicators (DLIs) that has two components: (a) a results-based component, and (b) a traditional IPF component that finances investments in ICT.
Component one will disburse against documented execution of eligible expenditures under the Eligible Expenditure Programs (EEPs) and the achievement and verification of the DLI targets. This $320 million component comprises four objective areas with 10 DLIs.
The $80 million component will finance the supply and installation of ICT equipment and software, cargo weighing, contactless scanning, and laboratory equipment for customs inspections (goods). It will also finance consulting and non-consulting services for software development, technical assistance, and training for complex interventions like business process improvement, and change management).
