PM Shehbaz orders faster FBR reforms and face-less system rollout

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif has directed that reforms in the Federal Board of Revenue (FBR) be speeded up and that the face-less system be introduced faster in tax collection areas.

According to a statement issued by the media wing of the Prime Minister’s Office on Monday, a weekly review meeting on FBR affairs was held under the prime minister’s chairmanship.

The prime minister said the initial results of the ongoing FBR reforms were encouraging. He said the institution’s capacity should be improved continuously to bring the tax gap under control.

He said special attention should be paid to technology, effective training, transparency and accountability to make the reforms productive. According to him, it is the responsibility of FBR officers to improve their performance in line with the nation’s expectations.

The prime minister said the ongoing reforms were in the larger interest of the state and the process would continue at all costs.

He directed that action be taken against corrupt elements in the FBR without discrimination. He said officers and staff who improved their conduct and performance should be given a chance to reform, while there would be no place in the institution for those who continued corruption and poor performance.

Briefing to the meeting

The meeting was given a detailed briefing on the ongoing reforms in the FBR in the areas of technology, work procedures and human resources.

It was told that, as a result of reforms over the past three years, the estimated tax gap had fallen from 6 per cent of GDP to 5 per cent. The effective use of technology has also significantly reduced the discretionary powers of FBR officers.

The briefing further said new FBR officers were being trained at the Lahore University of Management Sciences (LUMS), while in-service training programmes were also continuing for serving officers. A peer rating system has been introduced to assess officers’ performance.

To increase audit capacity, 957 auditors have been hired on contract on merit as third-party auditors, which has increased audit capacity four times.

Large-scale restructuring of the FBR on technical lines is under way. Skilled technical staff are being recruited and a performance-linked incentive system has been introduced.

Federal ministers Ahsan Iqbal, Azam Nazeer Tarar, Ahad Khan Cheema, Muhammad Aurangzeb and Attaullah Tarar, Minister of State Bilal Azhar Kayani, Attorney General Mansoor Awan and senior government officials attended the meeting.