Tax Reforms in Pakistan | TARP | IIR 2021 | FBR

Описание: What Tax Reforms have been conducted? Why Tax Reforms are needed in Pakistan? What Tax Reforms are needed in Pakistan?
Multiple reforms have been introduced in Pakistan. From TARP to PRRP.
Taxes Levied By The Federation of Pakistan
Income Tax except Agricultural Income Tax
Sales Tax (VAT)
Federal Excise Duty
Customs Duty
Petroleum levy

Taxes Levied by the Provinces
Agricultural Income Tax
Capital Value Tax
Motor Vehicle Tax
Land Tax
Property Tax
Cesses like Cotton cess, Sugar Cane cess
Excises on Hotels, Cinemas, Etc.

Federal Board of Revenue
Apex Body for collection of Federal Taxes
Collects 90% of Federal Revenue
Formulation and administration of fiscal policies, levy and collection of taxes
Resolving tax related disputes‐ADRC
Conclude Double Taxation and Customs related Agreements with other Countries
Interaction with different Ministries and executive authorities of the State.

Need for Reforms
Low Tax : GDP Ratio
Narrow Tax base
Outdated Processes
Corruption & Administrative excesses
Complexity of tax laws and arbitrariness application
Relationship between taxpayer and tax largely adversarial
Lack of transparency
Inadequate HR Skills and Capabilities
Management of human resources severely deficient
Un‐documented economy
Lack of automation

Objectives of Reforms
To increase revenue
To widen taxpayers base
To simplify tax laws
Taxpayer friendly environment
To develop an honest and efficient tax administration