ISLAMABAD: The UK has renewed its support to strengthening Pakistan’s tax system, following the signing of a Memorandum of Understanding (MoU) between the Federal Board of Revenue (FBR) and the UK’s revenue authority, Her Majesty’s Revenue & Customs (HMRC) on Wednesday.
This MoU will help push up Pakistan’s tax collection by using data more smartly to target high net worth individuals who remain outside the tax net or underreport in tax documents.
The MoU includes support to FBR to ensure that multinational companies pay the right amount of tax and to participate in an international effort to control tax evasion. HMRC experts will provide advice to FBR on communication with the public about their tax paying obligations. The MoU also includes support to streamline customs procedures.
The FBR-HMRC MoU is part of wider support for Pakistan’s tax reform provided by UK through the Department for International Development (DFID). DFID’s support on tax also includes technical assistance through the World Bank’s Trust Fund for Accelerating Growth and Reforms.
