The Federal Board of Revenue (FBR) has completed 67 comprehensive field audits of large taxpayers and big corporate entities for cases selected by risk-based selection tools.
In official documents related to the Pakistan Raises Revenue (PRR) project, the World Bank noted that the progress has been slow as the single returns portal has not yet become functional for provincial general sales tax (GST) authorities, which is pending their agreement on the GST harmonization agenda.
FBR has completed 67 comprehensive field audits of large taxpayers for cases selected by the risk-based selection tool and monitored by the Compliance Unit through the Agriculture Marketing Information Service (AMIS), with associated reports to management.
The substantial progress is noted as all four provinces have adopted the FBR’s valuation tables for immovable properties, and the Balochistan Revenue Authority has signed a memorandum of understanding (MOU) with the FBR on input adjustments. However, there is slow progress in measures to strengthen provincial coordination on the exchange of taxpayer data.
There is encouraging progress in the implementation of Track and Trace, where e-monitoring of the production system has been installed in the sugar and fertilizer sectors (implementation in the fertilizer sector is pending verification), while the cement and tobacco sectors are underway.
There is improved performance in several Disbursement Linked Indicators. There is a reduction in the number of withholding lines from 49 in FY 2019-20 to 31 in FY 2021–22, and the Finance Division has published the detailed tax expenditure for FY 21 and evidence-based revenue forecasts for FY22.
The tax gap analysis report is being reviewed, the report said.
FBR has added 462,677 new taxpayers, identified through automated data sharing and ICT-based business intelligence tools.
Progress has also been made in strengthening customs processing with the reduction in the frequency of physical inspections at the border, from a baseline of 60 percent of goods declared through the red and yellow channels in 2018/2019, to about 34 percent in FY22.
Simplification of FBR’s core business processes is proceeding, and, to date, FBR has completed the review, redesign, simplification, and automation of 12 out of 16 business processes, i.e., 36 out of 48 steps. Finally, the FBR has continued to track the Key Performance Indicators and published the biannual results report on its website while the annual report is being reviewed for publication.
The FBR is planning to revise PC1, which is expected to be approved by the end of the calendar year 2022, allowing for the procurement of equipment as per the revised amounts. Procurement under this component will need to be stepped up to meet implementation timelines and deliver the approved pipeline packages, the report added.