PC-I

OF

Establishment of Taxpayers Facilitation

Centers (TFCs) – Phase II

April, 2014

GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PC-1 FORM
(INFRASTRUCTURE SECTORS)
1 Name of the Project
2 Location of the Project
3 Authorities responsible for:
a) Sponsoring
b) Executing
c) Operations &
Maintenance
d) Concerned Federal
Ministry
4 (a) Plan Provision:
- If the Project is included in
the Five Year Plan.
- If the project is included in
the medium term/five year
plan, specify actual allocation.
- If not included in the current
plan, what warrants its
inclusion and how is it now
proposed to be accommodated.
- If the project is proposed to
be financed out of block
provision, indicate:
(b) Provision in the current
year PSDP/ADP (2013-14)
5 Project objectives and its
relationship with sector
objectives.
The objectives of the
sector/sub sector as indicated
in the medium term/five year
plan be reproduced. Indicate
objectives of the project and
develop a linkage between the
proposed project and sectoral
objectives.
Revised 2005
Establishment of Taxpayers Facilitation Centers
(TFCs) – Phase II
Various locations across the country
Revenue Division
Public Works Department (PWD)
PWD
FBR (Revenue Division)
N.A.
N.A
The project is proposed to be financed out of the provision
from the PSDP for which a request for allocation of funds
in the PSDP 2014-15 has been made to the Planning
Commission
- N.A
Nil. However a request for allocation of funds has been
made in the PSDP 2014-15.
Pakistan has a narrow tax base and high enforcement costs.
The tax administration is further challenged by complex
compliance procedures. The experience with World Bank
funded Tax Administration Reform Project (TARP) has yet
to materialize into a higher tax-to-GDP ratio. The key
objective of this reform includes raising tax revenue
through improved compliance with tax laws and
broadening of the tax base; improving effectiveness,
responsiveness and efficiency of tax administration through
institutional and procedural reforms; improving collection
through transparent and high quality tax services; and
strengthening audit and enforcement procedures.
The main emphasis of the Tax Administration Reform
remained on promoting voluntary tax compliance through
an enhanced level of taxpayers’ facilitation. In the long-run,
these administrative reforms will enable tax administrators
to effectively tackle the tax population through a system of
audit and penalties by effective enforcement and
compliance at the grass root level.
The plan to establish Taxpayers Facilitation Centers at
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6 Description and Justification
of the project
- Describe the project and
indicate existing facilities in
the area and justify the
establishment of the Project.
- Indicate governance issues of
the sector relevant to the
project and strategy to resolve
them.
small district and sub-district level having potential tax
revenues is in line with the agenda of New Economic
Growth. Also as envisaged in the Vision 2030, the major
factors inhibiting the growth of tax revenues are lack of
documentation, absence of tax culture, narrow tax base,
large scale tax evasion etc. These problems cannot be
resolved unless there is a proper infrastructure at the grass
root level and strong linkages with the regional tax offices
to address these issues. The Government in his Vision -
2025 has also focused on modernization and regional
connectivity of infrastructure. In line with the above-
mentioned objectives, and to eliminate the bottlenecks to
the growth of tax revenues, there is a dire need to have tax
centers at all the cities.
In the first phase, purchase of land at 24 TFCs locations,
exterior development of existing TFCs buildings at 21 sites
and construction work at 7 new TFCs sites were planned
for which an umbrella PC-I was approved by the CDWP on
21-01-2011. Most of the activities under the umbrella PC-I
for phase-I have been completed whereas few remaining
activities are nearing completion. In continuation of that
initiative, now it is planned to cover the remaining cities for
establishment of tax facilitation centers in the second phase.
Major objectives of the project in quantifiable terms:
a) Purchase of land for TFCs at 16 locations
b) Construction work of TFCs at 33 Stations
The Phase I of the project is at finishing stage, which was
approved on 21-01-2011 at a cost of Rs.313.500 million,
involving purchase of land at 24 locations, exterior
development at 14 locations, and construction of buildings
at 7 locations.
In the second phase, the project envisages purchase of land
at 16 stations and construction at 33 stations across the
country.
The existing tax offices at District & Tehsil level are
operating in rented premises. It is understood that better
infrastructure facilities will help eliminate reliance on
rented buildings thereby relieving the national exchequer of
extra burden in the long run. The project shall contribute in
achieving FBR objectives, in particular and national
economy by increasing tax to GDP ratio through
broadening the tax base, in general.
Establishment of TFCs in FBR owned buildings will
provide better working environment for the tax officers /
officials thus result in an enhanced efficiency. It will also
provide better facilities to the taxpayers at accessible
locations. It will help to increase the number of taxpayers
due to easy access and reduction in travel time. The Project
will ensure increase in tax collection through broadening of
tax base at the grass root level, and through voluntary
compliance.
As far as the facilities are concerned the same may vary
3

Provide details of civil works,
equipment, machinery etc
7 Capital Cost of the Project
- Indicate date of estimation of
Project cost.
- Basis of determining the
capital cost, includes market
survey, schedule rates,
estimation on the basis of
previous work done etc.
History of project approval,
year-wise PSDP allocation, N.A
from place to place as the project is spread over 33
locations across the country. However, preference will
be given to the district government land preferably in the
newly established District Complexes particularly in the
Punjab province, where all the requisite facilities already
available.
The Federal Board of Revenue has continued with the
reform process, both in human resource and infrastructure
development, with a view to optimize revenues and provide
adequate infrastructure for its workforce as well as valued
taxpayers.
After approval of DDWP on 3.5.2012, PC-I of Phase-II was
submitted to CDWP on 5.5.2012 for its consideration and
approval. However in March, 2014, the Planning
Commission returned the PC-I with the observation that as
decided by the ECNEC in its meeting held on 28th August,
2013, “that the projects where funds are not available or
source of funding is not identified should be returned to the
sponsors”. The Planning Commission advised that
sponsoring agency may confirm the availability of
financing/inclusion of the project in PSDP.
The Project is now proposed to be financed out of PSDP
2014-15 for which a request for allocation of funds has
been made to the Planning Commission. Cost and scope of
the Project has been reviewed and accordingly a fresh PC-I
with an estimated cost of Rs. 997 million is being submitted
for consideration of CDWP.
Detail of civil works as per Annex-I
Rs. 997.00 Million (Details as per Annex-II)
Date of estimation: April, 2014
The cost of land has been worked out on estimated basis
after taking into account the location, area and prevailing
land prices as being assessed by the respective District
government of that area. However the actual cost of land
may vary from station to station as the project is spread
over a period of five years. Therefore keeping in view the
overall approved cost of PC-I from the CDWP and
permissible limit of 15%, internal adjustments within the
approved cost and scope of PC-I, (if required), would be
made with the approval of Principal Accounting Officer.
The construction cost is worked out on the basis of covered
area after considering the prevailing market rates of
construction material and other allied equipments and
percentage additions owing to inflation and price hike in
the later years.
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 releases and expenditure.
Item-wise, year-wise actual
expenditure and Physical
progress.
8 Annual operating /
maintenance cost after
completion
9 Demand & supply analysis
10 Financial plan and mode of
financing
11 Project benefits and analysis
12 a) Implementation Schedule
12(b) Result Based Monitoring (RBM) indicators
S.No Input Output Baseline
Year-wise /component wise physical activities
Items Unit Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
A Purchase of 02 03 04 04 03
Land
B Construction 02 06 09 09 07
of Buildings
Year-wise Financial Phasing
F/Y 2014-15 - Rs. 68 million
F/Y 2015-16 - Rs. 174 million
F/Y 2016-17 - Rs. 256 million
F/Y 2017-18 - Rs. 256 million
F/Y 2018-19 - Rs. 243 million
Total - Rs. 997 million
Rs. 10 million
There are about 67 TFCs at various tehsils / districts level
in addition to the Regional Tax Offices operating at major
cities. Majority of these local/district tax offices are
operating in rented premises with poor facilities and
inadequate locations hindering the work of tax
officers/officials and also does not facilitate the taxpayers
properly. By establishing own buildings at accessible
locations, like the other government departments, there will
be an improved infrastructure and conducive working
environment both for the officers/staff and the taxpayers.
To be funded through PSDP allocations.
Project Benefits to be achieved
- Better working environment for the tax officers /
officials, thus result in an enhanced efficiency
- Satisfaction of the taxpayers through better facilities
at accessible locations
- Number of taxpayers will increase due to easy
access and reduction in travel time
- Increase in tax collection through broadening of tax
base at the grass root level, and through voluntary
compliance.
- Overall positive impact on the taxpayer community
through better facilitation.
Starting Date: July 2014
Completion date: June 2019
Target after Targeted Impact
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 Indicator Completion of
Project
1. Rs.997  Purchase of In phase-I, In phase-II, The project will
million land at 16 purchase of purchase of land provide better
stations land at 24 at 16 stations working
 Construction stations and and construction environment for the
Work at 33 construction work at 33 sites tax officers /
sites work for 7 are planned. officials thus result
sites were in an enhanced
planned. This After efficiency.
project completion of  The Project will
is
nearing phase-II, FBR provide better
completion. will have its facilities to the
own TFC taxpayers at
buildings at 40 accessible locations.
- stations (both  Number of taxpayers
in phase-I and will increase due to
II). easy access and
reduction in travel
time.
 The Project will
ensure increase in
tax collection
through broadening
of tax base at the
grass root level, and
through voluntary
compliance.
 Overall, there will
be a positive impact
on the taxpayer
community through
better facilitation.
Arrangements for A Project Management and Evaluation Cell (PM&EC) is
Monitoring and Evaluation already working in the FBR (HQ) to perform the following
of projects during functions for monitoring and evaluation of various projects;
implementation a. Monitor physical and financial progress of purchase of
land and construction Tax Centers on monthly and
quarterly basis and prepare quarterly reports for review.
b. Facilitate the field formations to remove bottlenecks in
the implementation of the project.
c. Pay site visits to the project on regular basis, evaluate
and expedite physical progress thereof, and submit
reports to higher authorities.
d. Keep a close liaison with the field formations and the
executing agencies.
e. Perform all the duties related to the requirements /
procedures of Planning Commission and Finance
Division.
f. Prepare, coordinate and collate the Work and Cash
Plans for the project.

Evaluation of the Project

The PM &EC shall carry out following functions related to
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 evaluation of each component of the project.
 To furnish each year list of completed components of
the project.
 To provide all the relevant project details such as
targets / achievements successes, failures, institutional
capacity / deficiencies, and problems confronted during
implementation in the above Performa
 To prepare Work Plans and Cash Plan of each
component of the project in line with instructions of
Planning and Development Division/Finance Division
so that funds could be provided according to phasing of
the works and results obtained within stipulated time.
13 Management Structure The project will be administered by the PM &EC at FBR (HQ).
and Manpower Besides this Project Coordinators will be appointed in the field
Requirements offices to ensure completion of the works within the given time
(a) Administrative period and approved cost through effective monitoring and
arrangement for the coordination with the PWD and the Contractors.
implementation of the
project
The requirement of manpower has been kept as minimum as
(b) Manpower possible to follow austerity and only the required manpower
Requirements with respect to the requisite administration and technical help
has been included. Following is the detail of man power
requirements for effective execution of the project:-
S.No. Name of Posts No. of Posts
1 Project Director 01
2 Town Planner 01
3 Architect 01
4 Civil Engineer 01
5 Accounts Officer 01
6 Quantity Surveyor 01
7 Sub Engineer (Electrical) 01
8 Stenographer 01
9 Stenotypist 01
10 Assistant 02
11 LDC 02
12 Draftsman 01
13 Data Entry Operator 04
14 Drivers 04
15 Dispatch Riders 02
16 Naib Qasid 06
Except for technical staff, the services of other Project staff
shall be borrowed from within the FBR and other
Ministries/Departments on deputation basis for the project
period. .The technical staff will be hired on contract basis for
the period of the project.
14 Additional projects The Phase I of the project is in finishing stage, which was
required to maximize approved on 21-01-2011 at a cost of Rs.313.5 million,
socio-economic benefits involving purchase of land at 24 locations for TFCs, exterior
from the proposed project development at 14 locations, and construction of buildings at 7
locations.
In the second phase the project envisages purchase of land at
16 stations and construction at 33 stations across the country.

7
 After completion of phase-I & II, FBR will have its own TFC
buildings at 40 stations.
FBR has also initiated another important project for
Construction of building for RTO Islamabad for which PC-I is
being submitted to CDWP separately.
These projects shall contribute in achieving FBR objectives in
particular and national economy in general. They will also help
in Infrastructure development of the country.

15 Certified that the project proposal has been prepared on the basis of instructions provided by
the Planning Commission for the preparation of PC-I for the infrastructure sector projects.

Prepared by: (Hafiz Shahid Abbas)

Project Director (TFCs)
051-9202933

Checked by:

(M. Asim Khattak) (Mohammad Iqbal)

Secretary (Projects) Chief (Administration)
051-9209659 051-9216745

Approved By: (Tariq Bajwa)

Secretary Revenue Division/ Chairman
Federal Board of Revenue
051-9201938