Govt forms task force to boost tax collection

September 28, 2023 (MLN): A nine-member task force aimed at enhancing tax collection and broadening the tax base has been constituted by the government under the leadership of caretaker federal minister for finance and Revenue Dr. Shamshad Akhtar.

The task force's responsibilities include a comprehensive review of the tax collection data and relevant analyses conducted by the Federal Board of Revenue (FBR), to identify areas of revenue performance and potential.

Furthermore, the task force will investigate issues such as tax evasion, smuggling, corrupt practices, and revenue leakages, with the aim of proposing concrete countermeasures to address these challenges.

Critical structural reforms within the tax administration, including human resource requirements, improvements in taxpayer grievance mechanisms, and alignment of incentives for tax collection, will also be looked into.

The team will be responsible for conducting a detailed examination of the collection mechanisms for sales tax, income taxes, assessment of imported goods, and the online tax system.

This includes a thorough study of system audit reports to propose measures to plug existing loopholes.

Moreover, the task force will identify hurdles and bottlenecks in tax collection and suggest technology-based solutions to overcome these obstacles.

They will review tax policy measures to ensure optimal tax base coverage, correct tax gaps, and enhance the economic efficiency and equity of the tax system. Various policy options for base assignment to improve collection systems will be analyzed.

Additionally, the team will scrutinize the government's tax expenditures and propose a mechanism for conducting cost-benefit analyses for any proposals related to tax exemptions.

Copyright Mettis Link News