Taxpayers and tax administration should have best liaison between them in order to tackle the issues faced by both sides due the lack of confidence
ISLAMABAD: Federal Board of Revenue (FBR) Member Research, Analysis and Reforms (RA&R) Ali Salman Abbasi has said that market research and new improved policies will increase the tax to GDP ratio, adding that department was working over to bring automation in the system to facilitate the taxpayers.
In an exclusive interview with Customs Today, Abbasi said that research and reforms wing was eminent part of the FBR due its futuristic approach and research. He said that the major role and responsibility of it, was to research and analysis of macroeconomic indicators of the whole gambit of the taxation, policies of FBR and its performance efficiency.
He also indicated the major role of the wing signifying the coordination between FBR and the rest of donor groups including World Bank, International Monetary Fund (IMF) etc. FBR was working on different projects related to administration and structure of human resource reforms, he informed.
Abbasi identified a WB funded project TAGA and hoped its results will accelerate the tax collection process in the country in coming two or three years.
While sharing his views on the lowest tax to GDP ratio in Pakistan, he said that “tax to GDP involves several functions from business environment, mixed economy, internal affairs and national environment to international trends.” Taxation was central to the country and it needed more efforts to bring betterment in tax policies, member said, adding that incumbent government was working in the best interest of the taxpayers.
The FBR was making efforts to make the tax forms simpler to facilitate the taxpayers; Abbasi revealed and also added “tax return forms are simpler than the forms issued 15 years back to taxpayers.” He said as per the demand of the business community, the tax forms were being prepared in Urdu language, adding that this project required a huge investment to be realised.
He further said that the interest of the taxpayers was foremost, adding that taxpayers and tax administration should have best liaison between them in order to tackle the issues faced by both sides due the lack of confidence.
He said that FBR did not sponsor any organization or offer any fellowship to rest of the world in the field of research and revenue collection but indeed, lots of national and international funds were available in this regard and FBR facilitated its own officer to get training nationally and internationally.
He said referring to the problems encountered by a member, flow of work was usual and there were not any huge problems faced by member as issues were sorted out on daily basis.
Responding to a query, he said that RA&R wing has been divided in two groups namely Tax Policy Analysis Unit and Market Monitoring and Intervention Unit, following their nature of work.
Under the cover of Tax Policy Analysis Unit, “we deal research, analysis of macroeconomic indicators their trends, implications, analysis of collection of direct and indirect taxes, tax expenditure, compliance cost on the mechanism of taxes and also conduct research for new taxation measures”, he said.
However, the other unit covers the analysis of economic trends, audit of units and sectors on the directions of Board-in-Council, impact assessment of new tax measures and generation of evaluation reports on revenue responsiveness of each such measure.
The research and development in the specific field can enhanced and facilitate taxpayers resulting in more efficient and effective collection in turn and simultaneously provide a comfort level, eliminate the unfair competition and curb the illegal activities.
