ISLAMABAD, Aug 23: The World Bank will lend Pakistan $100 million on January 31, 2005 to complete restructuring of the Central Board of Revenue by 2008. "A total amount of $125 million is being spent on this important task for which $25 million will be provided by Britain's Department for International Development," CBR Chairman Abdullah Yousuf said.
He said donor agencies were providing financial and technical support to substantially enhance revenues through the restructuring of the CBR. Talking to reporters here on Monday, the CBR chief, however, regretted that Pakistan's tax-to-GDP ratio was 11.5pc which needed to be enhanced.
He was confident that in case services and agriculture sectors were brought in the tax net adequately, the government could considerably improve its revenue position. He said that major changes in the procedures were being contemplated so as to have simplification and total automation in the CBR.
The objective, Mr Yousuf said, was to attain an eight per cent growth in revenues compared to the current six per cent, specially by plugging leakages and tax losses.
"During the next four-year period, inefficiency and leakages will be drastically cut," the CBR chairman said. Responding to a question, he said the self-assessment scheme in customs would be soon be launched in Karachi for electronically filing goods declarations.
"This will eliminate 32 steps that are currently taken before the clearance of goods at ports," he said, adding it would be a pilot project that would be later replicated at other places as well. Through this scheme, one-third business in Karachi would be properly looked after, he said.
He said the introduction of self-assessment schemes in income tax and sales tax had restored the confidence of the private sector to some extend. The purpose, he said, was to greatly facilitate the business by removing its apprehensions.
In reply to a question, Mr Yousuf said that a one-page simple form would be introduced for filing tax returns and that the CBR would not be asking for attaching electricity and gas bills with it.
The CBR chief said that 1.02 million taxpayers possessed the National Taxation Number. He said that there was a lot of scope for improvement in the CBR to enhance revenue with the support of the business community.