ISLAMABAD, Sept 6: The World Bank has linked 15-20 performance benchmarks with its funding of more than $120 million for the implementation of a restructuring plan for Pakistan's tax administration by 2006.

Official sources told Dawn on Monday that a high-level official delegation of the World Bank is scheduled to arrive here on September 9 to negotiate these benchmarks with the government authorities. During the meeting, the Bank officials and tax authorities would discuss terms and conditions of the grant.

The Bank officials and the Pakistani tax authorities would also discuss and finalize timeline for achieving implementation of all benchmarks to be attached with the funding, added the officials.

The most striking would be the granting of autonomy to the Central Board of Revenue (CBR) in execution of its policies at the earliest in what they described as a key factor of the funding.

The proposed autonomy would enable the CBR to effectively execute its policies in respect to financial and administrative functions, make its own recruitment, postings and transfers and devise policies.

The second benchmark would be that the CBR will have to raise its revenue from Rs518 billion collected in the year 2003-04 to Rs890 billion during the year 2007-08. While in tax to the GDP ratio, it has to be increased from 9.6 per cent during the year 2003-04 to 10.5 per cent in the year 2007-08.

The officials said that for achieving the prescribed growth in the tax to the GDP ratio, the GDP base has to be increased. According to the officials, the World Bank had also asked for regular meetings and monitoring of the Cabinet Committee on Federal Revenue (CCFR), which is headed by the finance minister and has met only once probably to review tax issues since its constitution in 2002.

All medium taxpayers units (MTUs) will be converted into regional tax offices (RTOs) by 2006 - which will collect income tax and sales tax under the same roof and to establish 60-70 taxpayers facilitation centres across the country.

The RTOs aimed at co-locating all income tax and sales tax work in 12 units and merging certain functions like registration, taxpayers facilitation, information processing and collection.

The other benchmarks linked with the funding included- the 0 - ? appeal period to be reduced from two year time to six months; registration of taxpayers to be reduced to three months from six months; to reduce the clearance of goods at ports within 24 hours from 8 days and audits to be minimized.

The reformed organization will be based on automation of the manual process, creation of data bank transaction and to prepare an information system plan, which would provide quality service to the taxpayer, reduce interaction between the taxpayer and tax collectors, improve voluntary compliance and addressing the problem of tax evasion.