Sources said on Tuesday that the Board has directed the ''Tax Policy and Reform Wing'' to appoint private sector specialists to search for new taxpayers. These specialists would also assist CBR in developing a medium-term strategy to address this challenging issue to expand the tax net in a more systematic and effective way.
When contacted a tax expert to comment on the decision, he said that it seemed that CBR was hiring specialists on the recommendation of international donors.
In the past, the CBR had hired British consultants like Maxwell Stamps to draft the reform plan under the guidance of the donor agencies. However, the details about the proposed specialists have yet to be devised by the CBR Tax Policy and Reform Wing.
However, it is not clear what would be the utilisation of the data available with the tax officials. It is claimed that CBR would rely on the data of utility agencies, motor registration authority, PTCL/mobile phone companies, banks, foreign travel agencies, auto manufacturers and Securities and Exchange Commission of Pakistan (SECP) to bring the non-filers into the tax net. In this connection a computer program is being prepared by CBR.
Meanwhile, CBR Fiscal Research and Statistics Wing has been exclusively working on collecting data from various sectors to analyse revenue trends, number of registered persons and bringing new persons into the tax net.
Similarly, the CBR has also empowered several Commissioners of Income Tax to broaden the tax base. Besides, efforts are under way to increase the number of NTN holders by taking away the condition of submitting attested photocopy of Computerised National Identity Card (CNIC) by the new applicants.
"Is it justified to hire more specialists on huge salary packages in the presence of entire tax machinery, which is working on the same project for the last many years?" he added.