PM for end to institutional ‘hurdles, bottlenecks’ to effectively implement FBR reforms

• Premier Shehbaz directs use modern technology in customs clearance reform agenda to minimize time required for institutional procedures
• Stresses to devise a strategy to increase tax-to-GDP ratio through consultation among FBR, relevant federal institutions, and the provinces
• Set timelines for FBR’s tax collection and other reform targets for the next fiscal year will not be altered: PM

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Tuesday directed the relevant authorities to eliminate red tape and institutional hurdles to ensure the permanent implementation of reforms in the Federal Board of Revenue (FBR), expressed satisfaction over the increase in the tax-to-GDP ratio as a result of the reforms, the state broadcaster PTV News reported.

“I, along with the federal government, will fully support and endorse the reform initiatives undertaken by the authorities,” the prime minister said, stressing a uniform and effective implementation of revolutionary customs clearance reforms across the country, the PTV News added.

Premier Shehbaz Sharif was chairing a meeting held to review matters related to FBR here, said a statement from the Prime Minister’s Office (PMO) on Tuesday.

Prime Minister Muhammad Shehbaz Sharif chairs a meeting regarding matters related to FBR. pic.twitter.com/tcvAUlXhM0

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Minister for Economic Affairs Division Ahad Khan Cheema, Minister for Information and Broadcasting Attaullah Tarar, Law Minister Azam Nazeer Tarar, Minister for Petroleum Ali Pervaiz Malik, Minister of State for Finance Bilal Azhar Kayani, the Attorney General of Pakistan, Chairman FBR, and other relevant government officials and dignitaries attended the meeting, the PMO added.

He also directed to use modern technology in the customs clearance reform agenda to minimize the time required for institutional procedures. The prime minister also directed the federal and provincial authorities to work together to sustain the benefits of tax collection resulting from FBR reforms in the next fiscal year.

He noted that the effective implementation of previously imposed taxes in the upcoming fiscal year will play a key role in further increasing tax collection.

The prime minister stressed to devise a strategy to increase the tax-to-GDP ratio through consultation among FBR, relevant federal institutions, and the provinces.

“The set timelines for FBR’s tax collection and other reform targets for the next fiscal year will not be altered,” the prime minister said directing that in order to raise public awareness regarding the FBR and customs clearance reform systems, both institutions should enhance their capacity in collaboration with the Ministry of Information and Broadcasting.

During the briefing, the meeting was informed that as per the special directive of PM Shehbaz Sharif, the income tax return form had been prepared online in Urdu as simplifying the online income tax return forms and making them available in Urdu will benefit approximately 84% of filers.

The meeting was further informed that the FBR had achieved its tax collection target for the first month of the new fiscal year (July) and was expected to meet its targets in the coming months as well.

The establishment of digital enforcement stations for customs clearance across the country is underway on a priority basis. Full implementation of the Centralized Assessment Unit (CAU) and the faceless customs system will help make the customs clearance process more efficient and transparent, the meeting was told.

It was further informed in the meeting that the implementation of reforms in the FBR and customs clearance is progressing in accordance with the set targets, with changes in policy frameworks, strategies, and actions in various sectors.