Shuja Shah, Secretary Economic Affairs Division, signed the legal documents on behalf of the Government of Pakistan, and John W Wall, Country Director, World Bank, signed on behalf of IDA, IBRD and DFID. CBR Chairman M Abdullah Yusuf and head of tax reforms in Pakistan and Member, Tax Policy & Reforms, M.S. Lal were also present at the signing ceremony.
Sources said that project implementation period is 5 years, which will cover hiring of international consultants for devising tax-related software, procurement of goods, works (refurbishment of regional tax offices, medium taxpayers units (MTUs), technical assistance, training, program management, ICT (customised software) and ICT (server, PC, SW General, Office equipment, UPS, data communication and others.
The break-up showed that $3 million would be spend on goods; $24 million on works; $16.05 million, technical assistance; $10 million on training; $3.10 million on program management; $54.30 million ICT (Customised software); $35.65 million, ICT (server, PC, SW General, Office equipment, UPS, data communication) and $2.9 million would be spent on other tax related implementation plans.
The overall objective of the project is to make CBR management more efficient and effective. The project aims at facilitating and promoting voluntary compliance, and more equitable application of tax laws. In this connection, the CBR has chalked out a strategy to improve its organisational efficiency, promote compliance through strengthening audit and transparent as well as high quality tax service, improve trade facilitation through modern and internationally acceptable customs procedures and improve the integrity of tax administration.
Moreover, new human resource policy framework and management system combined with modernised procedures and institutional structure will increase transparency and integrity of the tax administration.
The project also aims to strengthen tax administration to contribute to the achievement of fiscal targets and facilitate the collection of maximum revenue.
The Tax Administration Reform Project (TARP), in a nutshell, seeks to support the reforms initiated by the government for improving tax administration. The overriding objective is to raise tax revenue through improved compliance of tax laws and broadening of the tax base, improving effectiveness, responsiveness and efficiency of tax administration through institutional and procedural reforms.
It would also improve collection through transparent and high quality tax services and strengthen audit and enforcement procedures.