ISLAMABAD: Transparency International Pakistan (TIP) on Friday called for setting up an independent Pakistan Revenue Regulatory Authority (PRRA) – which reports directly to the prime minister – for making laws for revenue generation.

In its proposals for 2017-18 budget sent to Prime Minister Nawaz Sharif, TIP claimed that if its suggestions are followed, revenue collection would cross Rs10,000 billion in 2017-18 against Rs3,600bn for 2016-17 budget.

In a letter, TIP Chairman Sohail Muzaffar said NAB had formed the broad-based ‘Prevention Committee of FBR’ in 2015 under the bureau’s Deputy Chairman Rear Admiral (retired) Saeed Ahmed Sargana to formulate recommendations for the collection of annual revenue.

The committee also includes a former chairman of the FBR, nominees of State Bank and Federation of Pakistan Chamber of Commerce and Industry besides others.

The committee has formulated twenty-one recommendations and submitted these to the Federal Board of Revenue which has not accepted the recommendations, the letter noted.

It was recommended that FBR should only be an implementing board under the finance ministry, and should be relieved from performing the role of a regulator.

The scheme of tax appellate authorities should be brought in line with the provisions of the constitution of Pakistan by removing adjudicating officers from subordination of FBR. Commissioner and collector of appeals be appointed and directly work under the supervision of the law ministry and members of tribunals be appointed and work under the respective high courts.

It was recommended that an efficient, reliable and user-friendly automation system should be introduced to help bring transparency in the FBR system.

Bringing foreign exchange into Pakistan through the exemption under IT ordinance to the foreign exchange via proper banking channel should be withdrawn.

Presently, State Bank is issuing bearer certificates or prize bonds of large denomination which is not only providing opportunity to tax evaders to park their black money under this mode of financial instrument, a proposal read.

The federal government in consultation with provincial governments should carry out assessment of the market rate of properties by engaging third party and should produce a reference document. The provincial excise departments should be engaged for this purpose and in this regard stamp duty and other levies for transfer of property should be between 0.5 per cent and 1pc.

All businessmen and retailers must be registered with licensing authority and with FBR. All receipt and payments above Rs50,000 should be through only banking channels and other transaction should be banned.

Incentives should be provided to those retailers and whole sellers who install electronic cash register without any turnover thresholds and connect with FBR database.

Sales Tax/VAT should be implemented in its true form through effective utilisation of Nadra database.

Published in Dawn, March 18th, 2017