ISLAMABAD: Pakistan has dismissed the World Bank pressure for implementing the tax administration reforms saying the government is already in the process of taking steps in this direction.

Finance Secretary Salman Siddiqui has responded to the letter written by the World Bank Country Director in Pakistan to Finance Minister Shaukat Tarin on October 19, 2009 forwarding the ‘aide-memoire’ and a ‘plan of action’ for rigorously implementing tax administration reforms.

The finance ministry in a press release issued on Wednesday did not spell out the ‘aide-memoire’ and the ‘plan of action.’ The World Bank Resident Mission also declined to comment.

However, the only points mentioned in the finance ministry’s short press release were the ‘legislative options’ and the Parliament’s right to make changes in legislation raised by the World Bank.

The finance secretary in his letter to the World Bank Country Director Yusupha Crookes categorically stated that ‘these issues need not be a point of concern for the bank’.

Mr Siddiqui clarified that ‘the Parliament is the sovereign body to approve or disapprove legislation introduced by the government or through a private member bill.’

‘The government of Pakistan is fully committed to the tax administration reforms, and in this connection, harmonisation of tax legislation has already taken place through the promulgation of Finance (Amendment) Ordinance 2009,’ the finance secretary said. The tax administration reforms in the FBR were being carried out under a project financed mainly by the World Bank.

In the meantime, technical-level negotiations between Pakistan and IMF were underway in Dubai to finalise the draft law on Value Added Tax.