August 11, 2007	Saturday	Rajab 26, 1428

ISLAMABAD, Aug 10: A high-level World Bank mission is due here on Aug 18 to review the implementation of various steps taken under the proposed restructuring of the tax administration reform project.

A senior official in the Federal Board of Revenue told Dawn on Friday that the mission during their stay in Pakistan would review the project implementation status, strategy and timetable being agreed with the bank during the last review meeting.

The FBR had held out an assurance to the bank officials to convert all medium taxpayers units (MTUs) into regional tax offices (RTOs) till June 30 last. So far, the FBR had converted three MTUs into RTOs at Rawalpindi, Peshawar and Abbottabad in the first week of January last.

According to the official, this will be the second consecutive failure of the reform team of the FBR to have failed to implement the agreed agenda of the reforms of the tax administration, which is expected to be completed by the year 2009.

The official said the FBR had also given an assurance to the World Bank to establish around 25 taxpayers’ facilitation centres before the end of June 2007. So far, only a few facilitation centers have been established by the tax administration reform teams.

This is going to be the hard issue, to be discussed during the bank review team, the official said.

According to another official who requested not to be named, the World Bank has strongly criticised the information technology part of the reforms project, saying it still remains much behind the target.

The World Bank provided $102 million assistance, $23 million grant by DFID while the remaining funds would be borne by Pakistan for implementation of the Tax Administration Reforms Project (TARP).

Elaborating further, the official said major component of the funding would be spent on automation of the manual process, creation of a data-bank transaction and to prepare an information system plan, which would provide a quality service to the taxpayer, reduce interaction between the taxpayer and tax collectors, improve voluntary compliance and address the problem of tax-evasion.

The main areas to be discussed during the meeting, the official said, would include implementation phase, automation of FBR, human resource training and surplus staff due to reforms.

Among other main issues, the official said the issue of an effective audit policy would also come under discussion.

Meanwhile, to work out a strategy before the arrival of the review mission, the human resource management wing of the FBR is holding a conference in Burbhan to come up with some report to be presented to the World Bank mission.