June 26, 2002	Wednesday	Rabi-us-Sani 14, 1423

ISLAMABAD, June 25: The Central Board of Revenue (CBR) on Tuesday signed a draft agreement with Maxwell Stamp PLC, a multinational company of UK as consultants for the reform programme of tax administration.

Out of four firms —KPMG, Price Water House Coopers, Maxwell Stamps and IBMFD— the government selected Maxwell Stamp.

During the signing ceremony here on Tuesday, the firm was represented by two directors, Martyn Kebbel and Richard Thoburn and Shahid Ahmed Khan, while Pakistani side was represented by member policy and tax reform cell, M. S Lal; chief policy and tax reform, Khawaja Tanveer Ahmed and secretary, Nadeem Dar.

The work will start from July 2002 and was expected to complete within next 18 months.

Speaking at the sighing ceremony, member tax reforms, M.S Lal said that the tax reform was aimed at facilitating the taxpayers.

He said that the focus of the reform strategy of CBR was to create an environment in which there was minimum contact between the taxpayers and the tax collectors and their voluntary compliance of the tax laws.

Mr Lal said that as a first step the large taxpayers unit (LTU) would come into effect from July 1, 2002 at Karachi.

The unit would reduce compliance cost of large taxpayers to secure revenue, improve audit capacity, monitor arrears and integrate taxes, he said.

The member said that there will be self-assessment in the entire taxation system.

He said that the government has introduced the dispute resolution system in the budget for resolving the tax disputes in the shortest possible time to facilitate the taxpayers.

Later, talking to Dawn the director of Maxwell Stamp, Martyn J. W. Kebbel said the firm would finalize an outline strategy in the next three months for restructuring of the tax administration.

The strategy would be wrapped up in consultation with tax officials as well as on the basis of a report by Syed Shahid Hussain on restructuring of tax administration and the one prepared by the IMF.

Mr. Kebbel said that the firm will go through the reform strategy documents of CBR to finalize a workable outline for implementation.

“We will broadly analyze the proposals of the two reports. The proposals we think are necessary will be picked up for implementation, while if we feel for some more good ideas, that will be incorporated in the strategy outline,” the director said.

Mr Kebbel said that the 16-18 experts of the firms having speciality in various fields would carefully diagnose the two reports and would come out with a comprehensive document with details and time lines.

The Maxwell Stamp will provide services of renowned international experts in the field of information technology, audit, business process re-engineering, human resource management, impact evaluation, taxpayers facilitation services, he said.

To a question he said that education of taxpayers was a major project which required a lot of financing. However, he said that tax education was a part of its reform strategy.

According to the director, institutional and procedural reforms, improving transparency and integrity of tax system would help to a great extent to eliminate the corruption from the tax administration.