FBR reforms after considering stakeholders? feedback: Zaidi

[ahlam1399]

ISLAMABAD: After facing tough resistance from the top field officers for establishing the Pakistan Revenue Authority (PRA), Chairman FBR Shabbar Zaidi said restructuring would be undertaken after taking into account feedback of all stakeholders.In his latest tweet on Tuesday, Shabbar assured the FBR officers of holding consultation indicating that they had not been consulted earlier.The officers gave a presentation to Shabbar on Tuesday expressing complete dissatisfaction with the FBR restructuring without bothering to consult them.With the endorsement of the GHQ, Prime Minister Imran Khan had approved the FBR’s structuring plan in order to bring the desired reforms under the multimillion loan obtained from the World Bank.The IMF’s technical mission also suggested coming up with the PRA. However, it is not yet known how the federal government will bring provinces on the board in the aftermath of enactment of 18th Amendment.In a tweet on Tuesday, Shabbar thanked all the CCIR of IRS for a very productive meeting and said the restructuring/transformation will be undertaken after taking into account feedback of all the stakeholders.The whole organization, including all levels of staff, will be taken into consideration, he added.But this approved plan of the FBR restructuring panicked the Inland Revenue Service (IRS) officers who collectively made a presentation before the chairman and supported the government’s move of documentation and revenue maximization but opposed changes in the structure of FBR.Instead of providing jobs to 10 million people, the government is on the path of dismantling the FBR that would render 10,000 people jobless, they feared.The FBR, according to the IRS officers, came into being by an act of Parliament almost 100 years back in 1922 under the British rule and now the incumbent regime is going to dismantle it at the stroke of pen.“If this government does not mend its ways, then we will definitely approach the courts to stop this unjustified move,” they threatened.In their presentation, the IRS fully supported the government initiative to consolidate all taxes within the ambit of PRA. “We support the documentation drive and are part of it. We fully support a harmonized GST and assure the government of all out support in implementation of these reforms,” they added.They further stated that the IRS’s only point of disagreement was a vague, half-cooked and misleading administrative structure proposed for the PRA and secondly the timelines where implementation of the proposed structure was being done before the inception of PRA.They said the government did not take into account its revenue impact but it should keep in mind that it opted for creating panic within the ranks of FBR when the tax machinery was assigned to materialize one of the toughest revenue targets of the FBR’s whole history despite the latest agreement where the IMF had agreed to slash down the target from Rs5,503 billion to Rs5,270 billion.The FBR officers were of the view that they were collecting taxes by utilising just 0.63 percent of total collected revenues as international standard allowed utilization of 2.5 percent out of total collected taxes in many developed parts of the world.They were of the view that the FBR required reforms to uproot corruption but it should be undertaken after due consultation with FBR officers, staff, economists and civil society instead of fulfilling wishes of few influential.http://feeds.feedburner.com/~r/com/cwEr/~4/ONYjls4e7qU

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