Pakistan has been reeling under the shadow of mismanagement, structural flaws and maladministration since its inception with some exceptions toward its journey on the tardy path of development. One of the main hurdles in the administrative structure is the absence of coordination and collaboration among various vital organs of the government. The country needssteps to stimulate revenue generation mechanism and the answer lies in introduction of a better system of tax collection and foreign direct investment.
According to newspaper reports, the Board of Investment has come up with a plan in collaboration with the Federal Board of Revenue to create a business-friendly environment in the country by integrating shipping, transport and regulatory agencies all together.Under the proposed plan, a one window operation will be launched to ensure coordination between customs clearance department and other agencies with real-time information about taxation, fiscal laws and policies.The exercise will help set up the tax administration on modern lines.The plan also envisagesthe formation of a data warehouse and business intelligence system to help policy makers reach a better understanding and ensure coordination between the federal and provincial taxation authorities. A Virtual One Stop Shop awaits the finance minister’s nod to start function but the principal role in the new set up will be of the prime tax collection authority. However, it should be kept in mind that several best ideas and proposals have been thrown into cold storage due to lack of coordination. Therefore, experts believe that coordination between the Board of Investment and the Federal Board of Revenue is vital to steer the country out of the financial mess.
Every investor is not only concerned about the security of his assets but also feels the heat of the tax collection authorities. If the government wants foreign investment, it will have to set up special economic zones with minimal tax regime. In a country where lack of coordination between the government departments is a major area of concern for the local and foreign investors, it will be a blessing for the country and the investors if measure are adopted to ward off the official rigmarole. However, things will only move forward when capacity of the taxation officials is enhanced and trust of the businessmen in the government agencies is restored. There is no dearth of the businessmen who want to pay taxes and no dearth of honest officials who want to go by the book, but there is a trust deficit lying somewhere between the two extremes. Only better coordination between the government agencies as well as their coordination with the business community can ensure emergence of a tax culture and an environment for business promotion.
