ISLAMABAD: The Federal Board of Revenue (FBR) has launched the Inland Revenue Important Reform Plan (2021–25) with the objective of enhancing tax administration in four strategic sectors.
It proposes reforms to improve tax administration in four main areas: tax compliance, tax administration strengthening, institutional capacity building, and legislative framework strengthening.
The plan lays forth a defined reform agenda for the four-year period beginning in 2021-22 and ending in 2024-25. The launching event was presided over by FBR Chairman Ashfaq Ahmed.
Even more important foreign funders like the World Bank, IMF, and ADB, as well as senior FBR leaders, came to the event.
Besides that, the Inland Revenue wants to help people who don’t pay taxes by setting up a compliance risk management system, making it easier for people to register, fill out, pay, and report their taxes, lowering the cost of compliance, increasing the auditing capacity, and making it easier to do business.
Needless to say, more automation for improved service delivery and a data-centric strategy are critical reform areas. By using current data holdings and generating new data sources, the FBR will be able to more accurately identify compliance problems and divert resources to regions of greatest risk.