Karachi, May-2024: Dr. Murtaza Mughal, President of Pakistan Economy Watch (PEW), said on Tuesday that Pakistan’s economic autonomy is contingent upon the Federal Board of Revenue’s autonomy.
He stated that FBR should have autonomy in order to boost the nation’s limping economy.
In a statement issued today, Dr. Murtaza Mughal stated that one of the most important institutions, like FBR, should be liberated from the control of members of the political elite.
He said that as long as FBR remains the slave of politicians, Pakistan will have to accept dictates, continue borrowing, and never achieve economic freedom.
He added that if FBR becomes independent, the country will have economic freedom and not have to take dictation from any other country or institution.
According to Dr. Murtaza Mughal, every patriot wants to see a significant increase in the tax net. Still, certain influential sections reaping the benefits of tax concessions and exemptions do not want it.
International institutions have tried hard to improve the FBR, but those who benefit from the weakness of FBR have frustrated all such efforts.
To improve the economy, it is necessary to widen the scope of the tax net and remove the loopholes in the tax system.
Currently, some significant sectors are either tax-exempt or have paid very little in taxes, but this process cannot continue because continuous borrowing is not an option.
He pointed out that despite investing billions of rupees in the track and track system, the mafia’s unique relationships with influential figures prevented the expected tax increase.
Dr. Mughal said that FBR, which is the tax system’s foundation, must be reorganized with a primary focus on personnel quality and overstaffing.
Many officers perform audits and evaluations that frequently end up in appellate forums because they are overburdened by revenue targets.
Tax administrators shouldn’t be in charge of policy matters, and automation should take precedence over manual procedures. It is imperative that taxpayers’ perceptions of the FBR be improved to promote compliance, he observed.
A single tax collection agency for all taxes in Pakistan could improve efficiency and effectiveness in tax administration. The emphasis should be shifted to tax base expansion as there are still not enough taxpayers who are actively filing returns.
Many register with lower incomes below the taxable levels in order to avoid paying higher rates, which should be streamlined.
He said that foreign investors’ confidence increased due to government policies. The rupee’s value has stabilized, inflation is decreasing, and the country’s economy is expected to improve further in the coming days.
