Pakistan’s government is committed to granting the Federal Board of Revenue (FBR) operational and financial autonomy to prevent political interference and make it more efficient and service-oriented, Finance Minister Shaukat Tarin said at a meeting with senior officials at FBR headquarters in Islamabad.
Tarin praised the FBR’s revenue collection performance last year despite challenges posed by Covid-19. He said the board had exceeded its target by Rs. 160 billion in the first two months and was on track to meet this year’s target of Rs. 5829 billion.
Broadening the tax base is one of the government’s priorities for the year. Committees including private-sector experts, NADRA and FBR officers are working on the effort. They are also assessing the FBR’s resource constraints, particularly its finances and logistics, and will recommend ways to address them.
The minister cited the integration of point-of-sale systems to record retail transactions in real time and the Track & Trace project, which is due to roll out in November. He said he had approved Rs. 432 million for Track & Trace. Tax-system automation, he added, would improve transparency and limit discretionary powers. A Technical Supplementary Grant of Rs. 3.8 billion was approved this week to upgrade and secure IT systems.
Under the Pakistan Single Window project, more than 70 departments will be brought together on one platform to facilitate businesses and promote trade. Tarin urged the FBR to aim to raise the tax-to-GDP ratio to 20% over the next 6–8 years. He also welcomed progress on harmonizing sales tax between the federation and the federating units through the National Tax Council.
Tarin called the Integrated Transit Trade Management System a landmark project that would connect Central and South Asia once completed. He said anti-smuggling efforts were a top priority and paid tribute to customs officials who had died in the line of duty.
FBR Chairman Dr. Muhammad Ashfaq Ahmed said the board was geared to meet and exceed this year’s target. He said the government was working to create a supportive environment for trade and business, especially small and medium-sized enterprises, through simpler laws and procedures.
