Islamabad (Web Desk): Prime Minister Shehbaz Sharif on Wednesday directed the Privatization Ministry to present the final schedule for the implementation of the privatization of Pakistan International Airlines (PIA).
He was chairing a high level meeting on the PIA’s privatization and restructuring of the Federal Board of Revenue (FBR) in Islamabad.
The prime minister emphasized ensuring transparency at all stages in the privatization process of the national airline and clarified that laziness and carelessness will not be tolerated in this regard.
The progress of the privatization of PIA so far and the upcoming steps in this regard were reviewed in the meeting.
PM Shehbaz further directed the law ministry to immediately make recommendations for the resolution of pending cases and legal disputes in the courts related to tax collections and revenue so that the hurdles in the way of disbursement of Rs1.7 trillion to the national exchequer can be resolved.
He also directed to submit proposals regarding the establishment of legal department in the FBR.
Giving in-principle approval of the proposed roadmap of FBR automation system, the premier directed to implement this roadmap with a clear time frame.
PM Shehbaz asked that targets not only be realistic but also the fastest in the region in terms of speed of implementation.
He said there is no time to waste and expressed resolve to work round the clock to achieve this goal.
The prime minister said this is the question of country's bright future and economic recovery.
Meanwhile, automation of FBR, ensuring transparency in the system, structural reforms according to global standards, increase in tax through incentives, elimination of corruption and smuggling, separation of inland revenue and customs departments and tax rates came under discussion in the meeting.
He termed implementation of reforms as inevitable to achieve the six to seven percent national growth rate.
Expressing desire to modernize tax and revenue system, the premier called for introducing incentive-based tax system.
He asked business community to play its role in the development and social service of the people of country.
PM Shehbaz emphasized to fully check the exemptions given on all taxes and ensure an effective third party audit system.
“If Small Medium Enterprises (SMEs) had been developed today, then Pakistan would not be behind the developed countries of the world.
He said that now SMEs sector will be promoted which was not encouraged in last forty years.
On this occasion, former caretaker minister for finance Dr Shamshad Akhtar gave a detailed briefing about the restructuring of FBR, automation and on different aspects of the loopholes in the collection of taxes and the future strategy.
She informed the meeting that Pakistan’s tax to GDP was 9.5 percent which was low as compared to other countries and it was very necessary to increase it for progress and development.
She said that 55.6 percent of the population did not pay any taxes while only 3.3 percent were paying taxes. Only 200,000 people were giving 90 percent of the taxes.
She said that recovery of Rs1.7 trillion of taxes could not be made because of the legal process.
She highlighted the recommendations for restructuring of the Customs Department on the pattern adopted by other countries and reforms in the legal and regulatory framework.
The federal policy board should prepare a long-term tax plan for the continuity of policy, she added.
