Government Partially Successful in Widening Tax Base

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The inaccurate data collection and administrative crisis being faced by Pakistan Revenue Automation Limited (PRAL) has hampered government’s efforts of increasing the country’s tax base.

According to a report, the data of 53 million transactions collected by the federal board of revenue was not able to be acted upon. The 53 million transactions data was made public by the federal tax authority earlier in June this year.

Despite having a whopping increase of over 0.8 million tax return filers following repeated extensions by the federal tax authority. Only Rs4.5 billion could be collected as per Federal Board of Revenue. This failure of collection of the expected tax was due to the incomplete data.

After failing to achieve their previous targets, the government has finally decided to make things right in future to avoid the mistakes they had earlier committed. The Pakistan Revenue Automation Limited (PRAL) has put forward a new plan which has sought the help of private sector. The new plan will be beneficial in ensuring the ease of doing business and will further improve transparency at the earliest.

The private sector will be further helping the government out in improving things such as tax return filing, current Customs clearance and tariff enforcement.

To make things right in future, there is still alot to be done by the FBR which includes hiring a permanent CEO of Pakistan Revenue Automation Limited (PRAL). Currently, acting CEO Ahmad Nawaz is managing three different positions including acting CEO, general manager software development and general manager operations. Talking to a media outlet, FBR spokesman Dr Hamid Atiq Sarwar stated that a permanent CEO will soon be appointed.

Moreover, despite tall claims of austerity by the government the PRAL gave a pay raise of 25% to it’s employees.

The news story was originally published in The Express Tribune  

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