Pakistan Considers Revision Of Tax Collection Targets

by Mary Swire, Tax-News.com, Hong Kong

01 November 2001

Speaking to a local online news service, the Chairman of Pakistan's Central Board of Revenue (CBR), Riaz Ahmed Malik said that the government was considering reducing expected tax collection figures for fiscal 2001-02 from the current Rs443.7 billion as the result of a combination of factors.

'I still hope that if the situation returns to normal in the next couple of months, the CBR would be able to touch the figures of around Rs430 billion,' Mr Malik explained, but added: 'In case the situation deteriorates beyond the present assessment then the target may be reduced further.'

In an interview for the internet edition of Dawn, the CBR chief explained that the events of September 11th had affected the country's revenue collections, with customs clearance down by almost a third, and sales and withholding tax, which are also collected at the import stage, similarly affected. He also revealed that as a result of the rupee's upward climb against the dollar, some additional revenue collection loss from import receipts was expected.

Speaking about the proposed restructuring of the tax administration, Mr Malik said that the reforms were the single most important step under current circumstances, and that greater automation of the tax system would minimize taxpayer interaction with corrupt tax inspectors.

Asked whether he believed that a reformed system would be workable in Pakistan, and would improve tax revenues for the government, Mr Malik said that he believed it would, if the new system is permitted to pragmatically evolve. After all: 'we are not going to impose any unusual obligations on the taxpayers,' he observed, 'but [are] just proposing to improve our own efficiency, working procedure and environment.'

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