ISLAMABAD, Nov 12: The Central Board of Revenue (CBR) told the World Bank here on Monday that the restructuring of the organization was being curried out rapidly with the aim to plug leakages and substantially increase revenues.
The visiting Vice President of the World Bank for South Asian Region Ms. Mieko Nishimizu held a detailed meeting with the chairman, CBR, Riaz Malik and his team over the much delayed restructuring of the CBR. Khawaja Tanveer, Nadeem Dar and Mr Lal, members of the restructuring team were also present during the meeting.
Informed sources told Dawn that the World Bank’s vice president was told that September 11 events had had a negative impact on revenues, which might force the CBR to revise their revenue collection target. This target has already been scaled down from Rs457.7 billion to Rs443.7 billion.
Insiders said that the World Bank, IMF and Asian Development Bank (ADB) wanted the restructuring of the CBR in line with the proposals made Syed Shahid Hassain’s Task Force on Reform of Tax Administration.
Both last and present chairmen were reportedly resisting the main recommendations of the task force due to which no restructuring of the CBR could so far take place.
One of the major recommendations of the task force was the removal of massive corruption from the CBR for which it believed that maximum autonomy should be given to tax administration. It also called for improving the present system of recruitment, training, compensation, performance evaluation, promotion and accountability. The government was asked by the task force to improve CBR’s credibility with tax payers.
“But my position is much better than the last year,” said Member Direct Tax Vakil Ahmad Khan. When contacted he said that in October Rs1.291 billion were collected in direct taxes compared to Rs1.186 billion of corresponding period last year.
He said withholding tax has increased but it did not affect revenues in direct taxes. “Although war risk and insurance charges have increased, the rupee also appreciated that compensated our revenue position”, he said adding that eventually there would not be heavy shortfall in revenues. He said since Letter of Credits (LCs) for imports relating to direct taxes were opened much before September 11, it did not greatly affect revenues. “Generally, he said, revenue relating to direct taxes and customs were not likely to be affected due to September 11 events. So far he said, there had been reduction of Rs7 billion in revenues which would be covered up.
The World Bank vice president is now scheduled to meet federal Minister for Health Dr. Abdul Malik Kasi on Tuesday. The provincial health ministers would also present during the meeting that would also finalize dates for holding human development forum in Pakistan.
