Daily Times

It is reassuring to witness FBR treading a road least travelled by and that is making the real difference. Its top leadership strongly believes in a culture of voluntary compliance and ease of doing business through digitization, transparency and minimum human contact between FBR and taxpayers. Pursuing its new vision, FBR has introduced a number of innovative interventions both at policy and operational level which aim at maximizing tax compliance through non-coercive measures. Unlike in the past, FBR has issued instructions not to take coercive measures until the case has passed the test of first appeal, at least. It is committed to follow the due process of law while ensuring that every penny due towards taxpayers is collected in a transparent manner as the worst revenue collection is the one which weakens the relationship between the citizen and the state. This is, indeed, a total paradigm shift which is manifested in clean taxation by timely issuance of refunds which has not only contributed significantly to ensuring the liquidity flow in the business but also bridged the trust deficit between FBR and taxpayers. The amount of refunds disbursed during July- November, 2021 was Rs. 123 billion compared to Rs. 88 billion paid last year, showing an increase of 40.5 %. Simultaneously, Team FBR continues to create sizable judicious demand in direct taxes and during the first five months of the current Financial Year, 2021-22, demand created stands at Rs. 491.03 Billion as against Rs. 439.88 Billion in the same period, last year, registering an increase of 12 %. However, FBR is promoting its policy of fair tax collection with not a penny received from taxpayers in advance. It believes that superior most revenue is the one that is collected without tinkering with business and industry. Thus, FBR seeks to explore these new frontiers i through a wide array of out of box measures which aim at facilitating taxpayers through a digitized, reliable and transparent tax system.

Unlike in the past, FBR’s innovative interventions are increasing voluntary tax compliance and minimizing harassment, coercion and high handedness.

Some of the key digital interventions introduced by FBR include the launch of Track and Trace System on key sectors of Large Scale Manufacturing (LSM), Point of Sale System to digitally monitor the Tier-1 retailers, automation of processes and preparation of Single Sales Tax Portal. A comprehensive awareness campaign has already been launched by FBR on print and electronic to educate consumers about shopping from POS-integrated retail outlets and thus participate in a lucrative invoicing prize scheme worth Rs. 53 Million, every month. Furthermore, FBR is collecting bulk of its revenue through withholding taxes and at import stage to facilitate the taxpayers on the one hand and to minimize the cost of tax collection on the other. Unlike in the past, these innovative interventions are increasing voluntary tax compliance and minimizing harassment, coercion and high handedness. Registering a significant growth in revenue collection from the Sugar Sector through implementation of Track & Trace System (TTS), FBR has already collected Rs. 32.43 Billion in the first six months (July-December) of current Financial Year 2021-22 as against Rs. 29.30 Billion collected in the same period last year, achieving 11 % growth. This encouraging outcome of the digital monitoring of Sugar Sector shows that TTS is contributing significantly to the prevention of revenue loss and resulting in increased revenue collection. The installation process of TTS equipment was undertaken in October and November, 2021 and all the Sugar Mills were delivered applicators along with tax stamps to be affixed on each sugar bag. FBR had notified that no Sugar Bags would be allowed to be taken out from a production site or a manufacturing facility without affixation of tax stamps and Unique Identification Marking (UIMs). However, TTS was formally inaugurated by the honorable Prime Minister of Pakistan on 23rd November, 2021. In order to ensure enforcement of movement of sugar bags with tax stamps, Inland Revenue Enforcement Network (IREN) was entrusted with the task to combat tax evasion in the Sugar Sector.

Likewise, in order to curb the menace of money laundering and ensure compliance of FATF, FBR in collaboration with United Nations Office on Drugs and Crime (UNODC) is regularly organizing training sessions on AML/CFT regulatory framework for Designated Non-Financial Businesses and Professions (DNFBPs) comprising jewelers, accountants and lawyers. A number of office bearers of various associations are invited to participate in the training sessions. The senior representatives from Ministry of Foreign Affairs, National Counter Terrorism Authority (NACTA), FBR, Financial Monitoring Unit (FMU)) and Institute of Chartered Accounts of Pakistan (ICAP) are generally the key-note speakers. They emphasize on combating Money Laundering in the non-financial sectors of the country by apprising the participants of the FATF compliance measures and the country’s own requirements to choke the funds and resources for money laundering and financing of terrorism. The speakers inform the DNFBPs on various aspects of AML/CFT, such as screening the lists of proscribed or UN designated persons and organizations, customer’s due diligence, suspicious transaction reporting and the national risk assessment on money laundering and terrorist financing. FBR as the AML/CFT regulatory authority will continue supervising and facilitating the DNFBPs, so that the ill-gotten proceeds of crimes cannot be stashed in gold or precious metals and stones.

Similarly, building further on its outreach activities for promoting tax compliance and citizenship education, FBR has actively engaged with the youth on campus enrolled at various leading public and private universities by signing MoUs with University of Central Punjab, Lahore, Bahria University, Islamabad, NUST, Islamabad and Quaid-e-Azam University, Islamabad. FBR has also proposed to establish a vibrant students’ forum named as TACS (Tax Awareness & Compliance Society) with a view to promote education and awareness about taxation through focused group discussions, seminars, lectures and walks. Pressing the MoUs in practice, FBR is coordinating to hold interactive sessions about tax education to be hosted by the partner Universities. The students are being informed about the scope and significance of paying taxes for the country. It goes beyond saying that students are not only the custodians of the future of this country but will soon be potential taxpayers as they start their practical lives. Hence, it is imperative that they should also become brand ambassadors of FBR and ask their immediate relations for discharging their tax liabilities so that our country becomes economically self-sufficient and is freed from the menace of heavy borrowing both national and international. These interactions are also critically important to remove some misconceptions about the tax administration and thus enlighten them about the latest initiatives taken by FBR in maximizing revenue collection and ensuring ease of doing business, especially those related to the digital interventions. FBR is offering internship opportunities to students enrolled with partner Universities which will certainly increase their employability skills. Efforts are also afoot to embed taxation as a subject so that students are groomed as tax compliant citizens.

Leading from the front, Chairman FBR is holding Weekly E-Kachehry at FBR (HQs) on every Friday to listen to the complaints and concerns of taxpayers. These E-Kachehries are meant to facilitate taxpayers by issuing on-spot directions for immediate resolution of their complaints. Thus, FBR is making all out efforts to facilitate the taxpayers and has already issued specific directions to its Field Formations for according top priority to the grievances and concerns of taxpayers, particularly, those coming from females or originating from remote and marginalized areas of Pakistan. This new vision enshrined in voluntary compliance and transparency is already showing its results through consistent revenue growth. While chasing a staggering revenue target of over Rs. 5.8 Trillion, FBR has not only achieved the target fixed for the first five months of the current Financial Year (July-November), 2021-22, but has also collected Rs. 304 Billion in excess to the assigned revenue target for the period. This is, by all means, a monumental success which is being generously acclaimed by all including Prime Minister who has been tweeting regularly to appreciate FBR.

The writer is a civil servant by profession, a writer by choice and a motivational speaker by passion!