ISLAMABAD: The Federal Board of Revenue (FBR) has finalized a plan to collect Rs 7 trillion per year during the next three years.
The FBR has prepared this plan in the light of recommendations of the Tax Reforms Commission (TRC) and it will be launched by July 1st this year after approval of the budget for the financial year 2016-17 by parliament.
Sources told Customs Today that under the plan, the FBR has already expanded its jurisdiction to district and tehsil level. In this regard, economic and tax profiling of almost all the districts of the county have been prepared.
Then on the basis of statistics and data collected through an extensive exercise of preparation of economic and tax profiling of all districts, have been matched with the database of National Database and Registration Authority (NADRA), Pakistan Bureau of Statics (PBS) and Benazir Income Support Program (BISP) and other agencies.
Under the plan, tax to GDP would be enhanced to 14% in the next three years. In this regard, jurisdiction of Large Taxpayers’ Units (LTUs) located in three major cities Lahore, Islamabad and Karachi will be confined within the jurisdiction of those cities, however, suburb and slums areas will be handled through Regional Tax Offices (RTOs).
Moreover, in a bid to expand the tax base, sales tax, income tax and federal excise duty would be consolidated.
A comprehensive briefing has also been given to the Finance Minister Ishaq Dar about this plan. During the said briefing, Finance Minister counter-checked the figures and statistics regarding revenue collection presented in the plan.
He also appreciated the concerned division of the FBR for preparing such a revolutionary and robust plan for the enhancing the revenue collection. Dar also expressed hope that with the implementation of the said plan, Pakistan would start repaying or paying back both foreign and domestic loans in next ten years.
