Structural reforms

Prime Minister Imran Khan has announced his future plans to restructure the FBR, which, at present, is a toothless department having centralised powers at top hierarchical levels for enforcement and collection of taxes. It is bleeding with rampant corruption. Political and administrative intervention in tax assessments and recoveries is widespread. There is no concept of centralised economic database of citizens to keep a check on voluntary tax declarations.

Tax litigation is another major issue, by dint of which tax demands end up being stayed by appellate forums for indefinite time periods. Why can’t the FBR be a law-enforcement department like the FIA and the police with more delegated powers to low-ranking officials instead of the centralisation of the same to top hierarchical levels? Why can’t there be a professional workforce like the SECP and the SBP ? Why can’t there be a speedy disposition of cases at tax courts instead of plethora of appellate forums that slow down tax collection? Why can’t there be performance-based incentives to FBR officials coupled with strict systematic accountability? True reform and real change lies in finding solutions of these problems.

Zaheer Khawaja

Islamabad