ISLAMABAD, April 14: The Central Board of Revenue (CBR) has assured the International Monetary Fund (IMF) of implementing the medium-term reform strategy (MTRS) of the tax administration by end of June 2004.
Official sources told Dawn on Monday that Finance Minister Shaukat Aziz along with the tax officials will further discuss the MTRS with the Fund’s officials during the 5th review of Poverty Reduction and Growth Facility (PRGF) started from Friday.
The MTRS includes the establishment of pilot customs administration reform project by November 2003; second large taxpayers unit in Lahore by February 2004; 5 Medium Taxpayers Units (MTUs) by July 2004 and 7 Taxpayers Facilitation Centres by July 2004. The MTUs were intended to be established at Karachi, Rawalpindi, Peshawar, Quetta and Islamabad.
The modern concepts of electronic transmission of entries, selectivity, computer assignment of apprising and examining officers and post release verification and audit would be tested from next financial year as a pilot project at Karachi International Container Terminal (KICT), which clears 25 per cent of imports through Karachi sea port.
Elaborating further, the officials said that the strategy revolved around information technology based process. The implementation of IT software and hardware; efficient use of technology was aimed at achieving the objective of minimum taxpayer interface and to allow the tax administration to be taxpayer friendly, while reducing compliance costs.
The existing structure of income tax, which was circle based, where all administrative, judicial, legal and enforcement power were exercised by one person will be replaced by a functional system on the basis of recommendations of various committees.
They said a new income tax organizational structure containing functions of taxpayer service, information processing, audit, enforcement/collection, legal, information technology, human resource development and internal audit had been developed and was being presently tested at Medium Taxpayers Unit Lahore.
They said that a home-grown automated re-engineered tax management system had also been developed, which would drastically reduce the locations as well the personal in the income tax organization.
The officials said the government would take necessary measures to ensure continuity of reforms. It required huge investment during 3-4 years for IT and infrastructure improvements. The reformed CBR would remained a division of the government, but it would need enhanced legal powers, capabilities and autonomy in order, the officials added.
