ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday updated the Senate Standing Committee on Finance and Revenue about current status of Pakistani application for the membership of Organization for Economic Co-Operation and Development (OECD).
The OECD is an international organization to promote policies that will improve the economic and social well-being of people around the world. Representatives of the 34 OECD member countries meet in specialised committees to advance ideas and review progress in specific policy areas, such as tax, economics, trade, science, employment, education or financial markets.
In this regard, Member Inland Revenue Policy Rehmatullah Khan Wazir along with Chief International Tax Muhammad Iqbal observed that hopefully Pakistan would win the status of signatory of membership of Organization for Economic Co-Operation and Development (OECD) by August this year.
Rehmatullah Khan Wazir said that after becoming member, Pakistan would have access to tax evaders in almost 34 members of the international organization. Furthermore, it will enhance revenue collection efficiency of Federal Board of Revenue (FBR) as well as empower tax authority to carry out operation against tax evaders on member countries.
Wazir told the committee said that Pakistan applied for the OECD membership in 2014 and it had successfully met two reviews and assessments so far. OECD’s assessors held detailed meetings with FBR, State Bank of Pakistan and Finance Ministry in March this year and were quite satisfied about the progress made by Pakistan to meet the required criteria.
Giving details of the process regarding the membership of the OECD, Chief International Tax Muhammad Iqbal said that Pakistan had met almost all the requirements of the OECD. The OECD presented ten points before Pakistani negotiators and Pakistan had complied six fully and two points partially and reported back to the organisation.
All the members of OECD automatically share data of taxpayers with each other through software every year. This process is followed to place a check on tax evasion and money laundering.
Furthermore, he said that Pakistan joined the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes in 2012. This move enabled Pakistan to participate in the peer review process which encourages all countries to adopt effective exchange of information in tax matters.
Moreover, he added Pakistan would be among those countries which were directly involved in efforts to make tax systems fair and transparent worldwide. “I look forward to strengthening our mutual cooperation,” he said.
Muhammad Iqbal said that the Global Forum aimed to ensure that all jurisdictions adhere to the same high standard of international cooperation in tax matters and Governments come together to fight and prevent tax evasion.
