FBR to be restructured, IMF assured

ISLAMABAD: The Government of Pakistan has assured the International Monetary Fund (IMF) that it will restructure the Federal Board of Revenue to boost tax collection

During talks here for the next review for delivery of the $700 million loan tranche, Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) officials briefed the IMF regarding anti-money laundering and suspicious bank transactions.

IMF urges Pakistan to broaden taxation to include real estate, agriculture sectors

The formal policy-level talks are expected to begin on Monday. However, both sides have agreed to expand the scope of taxation on the retail sector and real estate-based revenue collection in case of any possible shortfall in tax collection target.

Sources said that during today’s negotiations, Pakistan briefed the IMF about reforms in the FBR.

The global money lender was told that important changes would be brought in the structure of the FBR.

Sources in the Ministry of Finance informed that a Task Force is working to introduce reforms in the revenue board. Besides this, a Policy Division will also be established.

Sources divulged that the policy and the operational affairs of the FBR would be separated.

Sources also informed that government has set a revenue collection target of Rs9,415 billion for the current fiscal year.

Meanwhile according to sources, IMF also ‘asked’ Pakistan to ensure strict implementation of anti-money laundering laws.

MF staff directed Pakistan to devise a clear policy to detect ‘suspicious transactions’ in tax crimes and asked to pass clauses for strict punishment in the upcoming finance bill.

The delegation was briefed that Pakistan is already awarding strict punishment and blockage of bank accounts for money laundering.

The FBR was urged upon by the IMF mission for strict enforcement to end money laundering.