Federal Board of Revenue (FBR) has constituted an independent Reforms and Resource Mobilization Commission (RRMC) to give recommendations and devise strategies for the finance ministry to resolve budget and tax-related problems. The commission will be headed by a full-time Chairman, who will report directly to the Finance Minister. It will consult stakeholders, institute sub-groups and invite proposals for the budget and tax-policy reforms.

The first chairman of the commission will be Ashfaq Tola, while its members include Asif Haroon, Haider Ali Pater, Abdul Qadir Memon, Dr Veqar Ahmed, Saqib Sherazi, Ghaznafar Bilour, President of FPCCI or his nominee, President of Pakistan Tax Bar Association, and Chairman of FBR. Nisar Muhammad from Customs, Dr Muhammad Iqbal from Income Tax and Abdul Hameed Memon from Sales Tax have been added in the Commission as subject experts.

The RRMC has been tasked to give its first report as early as April, 2023. It has been directed to give recommendations, review existing revenue policies, and evaluate FBR data at the macro level, policies for resource mobilization, ease of doing business and economic growth. The main objective of the Commission is to give remedial measures for risks and snags in the existing tax regime. It will also formulate papers on how to reform the budget of the country.

It will also review the proposed amendments in Finance Bill and make recommendations; review complexities of legislation and recommend simplifications, suggest action plan to curb the parallel economy and to make recommendations for increased financial inclusion. It would also review and recommend a robust IT system on modern lines and make recommendations for minimizing taxpayer-tax collector interaction and maximizing trust between FBR and taxpayers, besides making recommendations on harmonization of General Sales Tax between federation and the provinces.

The commission can also co-opt any other person with the prior approval of the finance minister and can avail the services of any expert (s) on a need basis. It will have a full-time Secretariat at FBR (HQs) and the Board will provide logistic and HR support to the Commission. It may take decision through majority vote of all members.

Credit : Independent News Pakistan-WealthPk