TAX ADMINISTRATION REFORMS PROGRAMME
The Government of Pakistan has started a Tax Administration Reforms Programme with the help of International Monetary Fund. The basic objectives of the programme are to bring cultural, operational and structural changes in the taxation system. The Central Board of Revenue has planned to replace the existing divisional structure of income tax with a functional structure. Three Large Taxpayers Units have been established at Karachi,
Lahore and Islamabad. In the big cities Medium Taxpayers Units have also been established. Ultimately it is planned that all Medium Taxpayers Units will be converted into Regional Tax Offices. In total fourteen Regional Tax Offices will be established which will be responsible for collection of all domestic taxes, te income tax, sales tax and excise Under this programme, twenty-three Taxpayers Facilitation Centers have been opened whereas twenty-nine more such Centres are planned to be started. The Programme is expected to be completed by 2009 It will be only then that an assessment of
the achievements of the programme will be possible. In order to properly implement the Tax Administration Reforms Programme the Central Board of Revenue is being transformed into Federal Board of Revenue (FBR). The Federal Board of Revenue Act, 2007, has empowered the tax officials to formulate policy for performance management awards, incentive packages, golden handshake scheme and integrated management policy for the tax machinery. It will also provide powers to implement a complete human resource policy, power to assess, identify, create, decrease and reduce or designate various posts. The FBR Act empowers the Board to make Dfa Ho rules for maintaining discipline in the organization. It also ensures complete autonomy of the Board to run its day to day affairs in an efficient manner. The implementation process of the FBR Act, 2007, has been completed.
Income Tax Authorities expect that through this implementation the tax base will be broadened and the tax collection in the country will be enhanced.
