ISLAMABAD
The incumbent government has convened first meeting of newly-constituted Tax Reforms Commission on Saturday that would finalise the modalities and terms of conditions of working of the TRC.
Finance Minister Senator Ishaq Dar would head the first meeting of 21-member Tax Reforms Commission, which has been constituted for facilitating the general public about taxation issues and upgrading the current taxation system of the country. The PML-N government in last budget 2014-15 had announced to constitute a TRC, which was notified on September 25.
The TRC would promote tax culture in the country while also taking into consideration the suggestions of the people to improve the taxation system. The move particularly envisages improving the tax to GDP ratio to boost the economy. The Commission as its duties, shall undertake, review and rationalisation of direct and indirect taxes; Customs tariff rationalisation; review of autonomy and administrative structure of FBR and creation of border force to deal with illegal movement of persons and goods across the international borders. The Commission would also take up any other related issue, as it deems necessary.
“The TRC has given deadline to present its recommendations within 120 days on important issues related to tax structure of the country,” a senior official at FBR told The Nation on Wednesday. Two of the main tasks and challenges before the commission will be recommendations on introducing single digit, single stage non-adjustable sales tax and the FBR field formations other than the large taxpayers units reverting back to the circle-based system so that more efficiency and accountability is brought about in the field formations of the FBR, he added.
The Finance Ministry statement stated that it might be mentioned that revenue collection by the FBR is already exhibiting upward trend. FBR has collected revenue to the tune of Rs. 543 billion in the July-September quarter in current financial year as compared to Rs. 480 billion in the corresponding period last year. With the establishment of the Tax Reforms Commission, revenue collection is expected to improve further. However, the statement did not mention about the shortfall of revenue collection made in the first quarter. The government has faced over Rs 20 billion shortfall in the tax collection target during July-September of the ongoing financial year.
The Commission will comprise of 21 members and may co-opt any other person with prior approval of the competent authority. The following will be the members of the Commission: Masood Naqvi, FCA, Chairman and its members including Senator Usman Saifullah, Mian Abdul Manan, MNA, Representative of traders, Bashir Ali Muhammad, Industrialist, Chairman, Federation of Pakistan Chambers of Commerce and Industry or his nominee, President Karachi Chamber of Commerce and Industry or his nominee, President Lahore Chamber of Commerce and Industry or his nominee, President Peshawar Chamber of Commerce and Industry or his nominee, President  Quetta Chamber of Commerce and Industry or his nominee, President Institute of Chartered Accountants of Pakistan, President Institute of Cost and Management Accountants, Mirza Qamar Baig, Ex Federal Secretary, Professor Azhar Akram, Academician, President All Pakistan Tax Bar Association, Ashfaq Tola, FCA, Abid Shahban, Advocate Supreme Court, Farrukh Jawad Pani, Advocate Supreme Court Ramzan Bhatti (Customs), Farooq Malik (IRS) and Chairman FBR.