PTBP Web Desk
The Federal Board of Revenue (FBR), Rashid Mahmood, Chairman FBR and Secretary Revenue Division, has pledged to prioritize taxpayer-friendly systems and foster open dialogue with stakeholders. This commitment was highlighted in the FBR’s performance report for the fiscal year 2023-24.
The need to restore credibility and trust in the tax authority was also emphasized during a recent review of the Tax Laws (Amendment) Bill, 2024, in the Senate Standing Committee on Finance at the Parliament House. Finance Minister Muhammad Aurangzeb remarked on the growing disconnect between taxpayers and the FBR, stressing the importance of rebuilding this relationship.
According to Rashid Mahmood, the FBR’s role extends beyond tax collection. It is pivotal in implementing policies aimed at broadening the tax base, introducing end-to-end digitalization, and improving the efficiency of the taxation system. These measures are designed to establish a cohesive national tax strategy and simplify processes for taxpayers.
One of the key initiatives led by the FBR is the harmonization of sales tax returns across jurisdictions through a Single Portal. This portal is intended to streamline tax filing and foster transparency, reducing the complexity of compliance for businesses across various sectors.
“In line with our vision, we are unwavering in our commitment to reforms and modernization,” Mahmood stated. “We prioritize trade facilitation, recognizing that the success of any organization hinges on building trust and confidence among its stakeholders. Our recent focus has been on fostering trust through taxpayer-friendly systems and promoting open dialogue.”
Mahmood acknowledged the decades-long mistrust that has hindered effective collaboration between the FBR and taxpayers. By emphasizing open communication and introducing reforms, the FBR aims to dismantle these barriers and usher in a new era of cooperation.
The FBR Chairman’s efforts align with the broader vision shared by the Finance Minister. During the Senate Standing Committee meeting, Finance Minister Aurangzeb highlighted a critical issue: while many individuals are willing to pay more taxes, they are reluctant to interact with the FBR.
“A lot of people come to us and tell us that they will contribute more money to the national kitty but do not want to deal with the tax authority,” Aurangzeb said. “Restoring credibility and trust in the tax authorities will start with the FBR. It is not possible that you are a citizen of Pakistan and you do not want to deal with the tax authority.”
The FBR’s recent initiatives reflect its commitment to addressing the concerns of taxpayers and fostering a culture of compliance. Key measures include:
- Simplification of Tax Processes: The introduction of digital platforms and simplified procedures aims to make tax filing more accessible and less time-consuming for businesses and individuals.
- Stakeholder Engagement: Regular consultations with industry representatives and business leaders ensure that the FBR’s policies align with the needs of its stakeholders.
- Transparency in Tax Collection: By adopting end-to-end digitalization, the FBR seeks to enhance accountability and reduce opportunities for malpractice.
- Trade Facilitation: The harmonization of sales tax returns and the establishment of a Single Portal demonstrate the FBR’s commitment to streamlining operations for businesses across Pakistan.
Despite these efforts, the journey toward restoring trust in the FBR is fraught with challenges. The lingering mistrust stems from years of perceived inefficiencies and lack of transparency. However, the recent reforms and initiatives provide a foundation for change.
By fostering open dialogue and maintaining a taxpayer-centric approach, the FBR aims to create an environment where individuals and businesses feel confident in engaging with the tax system. This strategy not only supports revenue generation but also strengthens the broader economic framework of Pakistan.
