ISLAMABAD: The lack of both administrative and building infrastructure is badly affecting the broadening of tax base as well as the revenue collection efforts of the Federal Board of Revenue (FBR). At present, the FBR is lower both in number of tax offices and tax offices to population ratio and millions are being spent on rent for office buildings every year, and with allied issues of location and security.
“FBR has only 92 tax offices and highest tax offices to population ratio of 1:2.25 million in Asia Pacific Region. Out of 92 IRS offices only 35 are owned, whereas 57 are in rented premises” an official source at FBR told Customs Today.
The source told that with the provision of both the administrative and building infrastructure, FBR would be in a position to meet both the revenue collection by broadening of tax base. To achieve tax to GDP ratio of more than 15% and meet increasing revenue targets through broadening of tax base, tax offices must be increased having owned premises at district and tehsil level.
“Realizing the impending need of more offices, the project wing of FBR has recently been strengthened by the Chairman FBR Tariq Mahmood Pasha. The post of Chief (Project/Reforms) was recently established, supported by Secretary (Projects Customs) and Secretary (Projects IRS)” the source added.
The source said that FBR planned to reduce the tax rates substantially in the next financial year 2018-19 to broaden the tax base and facilitate the taxpayers; it is an established fact that presence and easy accessibility of tax offices not only contribute to efficient tax collection but also appropriate facilitation of taxpayers.
