ISLAMABAD: The implementation of a World Bank-assisted project aimed at strengthening tax systems and building tax policy analysis capacity has been delayed for months. The delay is attributed to the fact that the project was initially not included in the public sector development programme (PSDP) 2017-18 at the time of budget approval in June 2017.

A report of the World Bank says all the issues have now been solved and the budget for the project has been allocated by the government, allowing the opening of the ‘Revolving Fund Account’ and enabling the project to commence disbursement.

The $4.9 million project is part of the Department for International Development (DFID) and consists of two components: updating tax administration data centres to strengthen FBR’s capacity in information technology and building FBR’s fiscal research and tax policy analysis capacity.

The project will support the set-up of a tax intelligence unit and a market monitoring and intervention unit, whose aim is to develop the FBR’s capacity to carry out sound tax policy analysis. The World Bank is expected to extend the completion date up to June 2019.

Published in Dawn, March 22nd, 2018