ISLAMABAD: The Federal Board of Revenue (FBR) and the United Kingdom’s Her Majesty’s Revenue and Customs (HMRC) on Wednesday signed a Memorandum of Understanding (MoU) to strengthen Pakistan’s tax collection system.
The FBR-HMRC memorandum is part of wider support for Pakistan’s tax reform provided by UK through the Department for International Development (DFID), which also includes technical assistance through the World Bank’s Trust Fund for Accelerating Growth and Reforms.
Speaking at the signing ceremony, FBR Chairman Mohammad Jehanzeb Khan said the UK’s support in achieving the government’s goal of optimal tax collection was critical to their agenda of citizen centric public sector service delivery.
He expressed confidence that the MoU would help Pakistan move faster in the right direction to achieve its aspirations and objectives.
Joanna Reid, Head of DFID Pakistan, said the UK was committed to support Pakistan’s resolve in ensuring reduction of tax evasion and added that new phase of collaboration with FBR would lead towards transparency and efficiency in tax revenue collection system in Pakistan.
The MoU will push up Pakistan’s tax collection by using data more smartly to target high net worth individuals who remain outside the tax net.
The memorandum includes support to FBR to ensure that multinational companies pay the right amount of tax and participate in an international effort to reduce tax evasion.
The HMRC experts will provide advice to FBR on communicate with the public about their tax paying obligations. The MoU also includes support to streamline customs procedures.