ISLAMABAD: In the wake of emerging challenges on the economic and financial horizons, the Federal Board of Revenue (FBR) can only meet the future requirements of the nation by expanding its presence to large scale of the country.
In this regard, FBR is needed to appoint the District Tax Officers (DTOs) to ensure tax compliance to the required extent. The structural and human presence of tax officials is the basic pillars for any tax authority in the world have full-fledged tax compliance
A source at FBR told Customs Today that with the appointments of DTOs FBR would be in position to not only double but triple the tune of the revenue collection of in the coming years just because of the fact around 60 to 70% areas of the country was devoid of the presence of FBR’s tax machinery.
In this regard, the source said that in the light of recommendations of the Tax Reforms Commission (TRC) in 2016, FBR finalized a plan to collect Rs7 trillion per year during the next three years. The plan was launched by July 1st this year after approval of the budget for the financial year 2016-17 by parliament. However, due to some certain reasons the plan could not be implemented.
In 2017, the source said that then FBR chairman Dr. Muhammad Irshad announced that FBR had planned to establish the office of District Taxation Officer across the country, with the target to broaden the tax base and extend the penetration of tax collecting body into the society. In this regard, legal requirements were also met with the passage of constitutional amendments
“At preliminary stage, two DTOs were appointed in two districts but plan could not be implemented due to some inevitable reasons and challenges,” the source said, adding that the government at that time had imposed ban on the construction of new infrastructural network of FBR in remote areas.
For the upcoming government, the source said that appointment would have to broaden tax net as well as to enhance the tax compliance because FBR did not have presence at in remote areas. Moreover, the government will also have to look into the issue of banned construction of buildings for the tax authorities in remote areas to enhance the revenue collection.