(Web Desk) The federal government is highly likely to issue an ordinance this month for the reorganization of the Federal Board of Revenue and the implementation of reforms.
Long-term reforms will be introduced under the Ordinance, while implementation of the short-term plan under the first phase is already underway.
Sources say that the Prime Minister has approved the draft of the ordinance in principle, customs will be separated under the proposed plan, apart from this, several steps are being taken to make the enforcement effective and better.
Practical steps have been taken for digital invoicing, documentation rules and widening of tax scope.
The plan includes a proposal to set up Customs Oversight Board and Inland Revenue Oversight board, these boards will include FBR officers, Secretary Revenue Division, secretary Finance Division, Secretary Commerce Division and members from the private sector.
officials say that operational matters will remain fully under the control of the FBR and private members will not interfere in them. key indicators will be set to assess the performance of the Directors General of Revenue and Customs, these boards will also review revenue collection and achievement of targets.
How will digital invoicing impact businesses during the federal Board of revenue’s reform process?
Interview: Reorganization of the Federal Board of Revenue – An Expert Perspective
interviewer (Time.news Editor): Thank you for joining us today. The federal government is poised to issue an ordinance for the reorganization of the Federal board of Revenue (FBR). Can you explain what this ordinance entails and its long-term implications?
Expert: Thank you for having me. the ordinance in question represents a notable step toward reforming the Federal Board of Revenue. It’s designed to streamline operations and enhance efficiency within the agency. The reorganization will focus on separating customs from other revenue functions, which can lead to more specialized management in those areas. In the long-term, we can expect profound changes that aim to modernize revenue collection and improve compliance.
Interviewer: What are some immediate actions being implemented under the first phase of the plan?
Expert: The first phase sees practical steps already in motion. These include the introduction of digital invoicing and the establishment of clearer documentation rules. This shift towards digitalization is crucial as it helps widen the tax scope and minimizes tax evasion. It’s an essential move towards creating a more clear tax surroundings that benefits both the government and taxpayers.
Interviewer: The ordinance proposes the establishment of new oversight boards. Can you tell us more about their roles?
Expert: Absolutely. The proposed Customs Oversight Board and Inland Revenue Oversight Board will include FBR officials, secretaries from various divisions, and members from the private sector.These boards are designed to ensure effective oversight while operational matters remain firmly under FBR’s control. The involvement of private sector members is especially interesting as it could bring in fresh perspectives and foster greater accountability in revenue collection.
Interviewer: How will performance be evaluated under this new structure?
Expert: Key performance indicators will be established to assess the effectiveness of the Directors General of Revenue and Customs. This is a crucial aspect of the reform as it places accountability at the forefront. These boards will not only monitor revenue collection but also align the performance measures with the overall targets of the FBR. This structured approach aims to boost efficiency and drive revenue growth.
Interviewer: What insights can you share regarding the implications of these reforms for taxpayers and the economy?
Expert: The reforms are likely to have a positive ripple effect on the economy and taxpayers. For taxpayers, clearer documentation and the transparency offered by digital invoicing can simplify the compliance process. from an economic standpoint, improving revenue collection can lead to greater governmental capacity to invest in public services and infrastructure, ultimately benefiting society as a whole.
Interviewer: Do you have any practical advice for businesses regarding these upcoming changes?
Expert: Yes, businesses should start preparing for these changes now. They need to familiarize themselves with digital invoicing and modification in documentation requirements. Engaging with the FBR proactively could help businesses understand their new obligations better and contribute to improved compliance. Joining industry associations may also provide insights into best practices during this transition phase.
Interviewer: Thank you for your insights on this vital topic. It’s clear that the reorganization of the Federal Board of Revenue holds promise for substantive progress in Pakistan’s fiscal landscape.
Expert: Thank you for having me. These changes reflect a positive shift toward enhancing government efficiency and taxpayer engagement. As these reforms unfold,it will be crucial to monitor their implementation closely to ensure they achieve their intended outcomes.