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 the 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 here, Chairman FBR 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 objectives.
Joanna Reid, DFID Pakistan head, said the UK was committed to support Pakistan’s resolve in ensuring reduction of tax evasion, adding that the new phase of collaboration with the FBR would lead towards transparency and efficiency in tax and 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 the 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 communicating with the public about their tax paying obligations.
The MoU also includes support to streamline customs procedures.