Professional Documents
Culture Documents
Muhammad Salman Noor Roll # 49 (B) PDF
Muhammad Salman Noor Roll # 49 (B) PDF
Submitted By:
Muhammad Salman Noor
(17-MPA-E-49)
Submitted To:
Prof. Dr. Aamir Saeed
Session: 2017-2019
Introduction FBR
The Central Board of Revenue (CBR) was made on April 01, 1924 through
institution of the Central Board of Revenue Act, 1924. In 1944, a complete Revenue
Division was made under the Ministry of Finance. After independence, this course
of action proceeded up to 31st August 1960 when on the suggestions of the
Administrative Re-organization Committee, FBR was made a connected
bureau of the Ministry of Finance. In 1974, further changes were made to streamline
the association and its capacities. Therefore, the post of Chairman FBR was made
with the status of ex-officio Additional Secretary and Secretary Finance was
alleviated of his obligations as ex-officio Chairman of the FBR.
So as to expel obstructions in the activity of regulatory forces of a Secretary to the
Government and viable plan and execution of financial arrangement measures, the
status of FBR as a Revenue Division was reestablished under the Ministry of Finance
on October 22, 1991. However, the Revenue Division was annulled in January 1995,
and FBR returned to the pre-1991 position. The Revenue Division keeps on existing
since from December 01, 1998.
By the sanctioning of FBR Act 2007 in July 2007 the Central Board of Revenue has
now turned out to be Federal Board of Revenue.
Vision
To be an up-to-date, advanced, operational, self-governing and trustworthy
organization for enhancing revenue by providing superiority facility and
encouraging compliance with tax and related laws.
Mission
Improve the ability of the tax system to accumulate due taxes through submission of
modern techniques, providing taxpayer support and by creating a motivated,
satisfied, enthusiastic and specialized workforce.
The low tax to GDP proportion in Pakistan is primarily due to inborn shortcomings
in the tax system framework including;
(I) Wasteful tax administration
(ii) A narrow tax base
(iii) Skewed tax structure
(iv) Complex and non-transparent tax system
(v) Corruption and tax avoidance.
Project Description
The proposed Project will help the Government renovation the tax administration
system. It would help activity to review real weaknesses in tax administration
through interest in human resource and data innovation like information technology,
modernizing collection and review methods, cultivating deliberate consistence, and
fortifying the institutional system for tax enforcement. The Government is focused
on crucial change of institutions, motivators and responsibility to breakout from an
endless loop of high rates, savage administration, tax avoidance and low incomes to
an upright cycle of lower rates, evenhanded duty structures, reasonable organization,
willful consistence and higher income. CBR change is an imperative mainstay of
Government's more extensive methodology for transforming open division
organizations. Comparative changes have additionally been started at the State Bank
of Pakistan, Securities and Exchange Commission of Pakistan, WAPDA, and the
Office of the Auditor General.
Further addition, the Government with Bank help in procedure of setting up a wide-
running open segment limit building program which expects to improve the ability
base of its key services, agencies and regulatory bodies in an effort to introduce
broad based civil service reforms.
Objectives
The Tax Administration Reform Project (TARP) tries to help the changes started by
the government for improving tax administration. The abrogating objective is to
raise tax income through improved consistence with tax laws and widening of the
tax base; improving viability effectiveness, responsiveness and productivity of tax
administration through institutional and procedural changes; improving gathering
through straightforward and top quality tax services; and consolidate audit and
implementation techniques.
This Project pursues the fruitful completion of an IDF Grant which was stretched
out to the Government in 2000 to encourage improvement of execution plans for
institutional change of CBR. TARP help the continuation and compelling usage of
the reforms started to improve the ability of the tax system. In particular, project
objectives include;
Improving organizational efficiency and effectiveness of revenue
administration
Promoting compliance through strengthened audit and enforcement capacity
and transparent and high quality tax services
Improving trade facilitation through modern and internationally acceptable
customs procedures
Improving integrity and fairness of tax administration
Cost of the project
Type (Total amount) (US$m)
Borrower ($23.10)
IBRD ($24.40)
IDA ($78.50)
UK: British department for international development (DFID) ($23.00)
Total Project Cost: $149.00
Analysis
After taking the interview form senior management of FBR at CRTO Tax
House, Tax House، Nabha Rd, Anarkali, Lahore. I asked many questions
about Tax administration reforms project and I receive approximately
same answers from the senior management.
Mr. Khalid Hussain (Assistant director CRTO Lahore)
Mr. Imran Zaidi (Inspector CRTO Lahore)
Mr. Kashif Mehmood (Staff Officer Commissioner CTRO Lahore)
I asked main relevant questions about TARP. Mr. khalid Hussain briefly
describe me about TARP. He said that this project was basically start for
the tax reforms but we face a lot of problem after this implementation.
The main problem is that this project is 100 percent based on computer
system and technology and the one other main issue was the audit. In FBR
there is not conduct the audit for last many years. There is not proper
record of tax system. People are not aware how to become filer and how
to deposit file return. Mr. Imran Zaidi tell me about TARP that our
Pakistani culture is different from western cultural, he also said that this
project was adopt from Australian society, our society is different, here is
literacy rate is low, people are not aware about technology. Mr. Kashif
Mehmood also share his view point that the main issue to not get desirable
outcomes are that our top management priorities is to make maximize
profit. They don’t care about public ethics and behave. People of Pakistan
irritated form this system.
The ethical dilemma of this project is to make maximum profit by invest
a huge amount in the project but the public is not facilitating, the project
is flopped in 2012 due to not receive the desired outcomes. Without
planning to impose this project on public and not take care about the
public behave and public virtue, after the implement of the project, there
are create a large number of issues. Like mostly people haven’t
information of technology. Every day FBR launch new policy and give
them the name of tax reforms. Now public is not ready to trust and rely
on FBR due to every day change tax policies.
My last view point of this project is that instead of getting finance from
World Bank and impose the policy of western cultural, make sure and
identify the problem and issues by own research. Keep in mind the
country cultural, public behave, public virtue and values. Through this
method we will be achieve our target outcomes and facilitate the public in
real manners.
Transcription
Topic
Q. As you are working here with FBR, Can you tell me about effective and efficient
reforms in FBR that will get desirable outcomes?
Ans. Yes, in Pakistan the mostly people are not aware about tax benefits and they
don’t know about their advantages. People think this like a penalty. So, if you create
the concept that it is our investment, then our moral will increase and also efficiency.
Q.FBR is the main institute of the government, do you think that should we use the
project and policies of western cultural?
Ans. Yes, we can use. Because if you adopt the polices and project of developed
countries then defiantly it impose good results on our system.
Thank you Sir, for your time.