ISLAMABAD: The UK has renewed its support to strengthening Pakistan’s tax system, following the signing of a Memorandum of Understanding between the Federal Board of Revenue (FBR) and the UK’s revenue authority, Her Majesty’s Revenue & Customs (HMRC) on 17th October. This Memorandum will help push up Pakistan’s tax collection by using data more smartly to target high net worth individuals who remain outside the tax net or underreport in tax documents.
The Memorandum includes support to FBR to ensure that multinational companies pay the right amount of tax and to participate in an international effort to reduce tax evasion. HMRC experts will provide advice to FBR on communicate with the public about their tax paying obligations. The Memorandum also includes support to streamline customs procedures.
The FBR-HMRC Memorandum is part of wider support for Pakistan’s tax reform provided by UK through the Department for International Development (DFID). DFID’s support on tax also includes technical assistance through the World Bank’s Trust Fund for Accelerating Growth and Reforms.
At the occasion of MOU signing, Mohammad Jehanzeb Khan, Chairman of the FBR, said;“U.K Pakistan partnership is based on shared values, mutual trust and respect. U.K’s support in achieving Government’s goal of optimal tax collection is critical to their agenda of citizen centric public sector service delivery. 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 is committed to support Pakistan’s resolve in ensuring that tax evasion is reduced. I believe that it is only by improving the tax revenue collection that Pakistan can invest in vital public services and stabilise its economy.
I’m confident that this new phase of collaboration with the FBR will lead towards transparency and efficiency in the tax revenue collection system in Pakistan, and will bring significant benefits to the economy of the country.”