Official sources told Business Recorder on Tuesday that this decision has been taken by the Board-in-Council to redefine the role of CBR vis-à-vis its attached field formation. It has been decided to restrict the role of CBR to only policy formulation so that all efforts are devoted to economic analyses and identification of new avenues for increasing taxes.
When contacted, a tax expert said that the CBR has taken this policy decision at a time when most of the tax-related functions are being performed by the Board. For example, sales tax registration is issued from the centralised centre at Islamabad and collectorates powers'' have been minimised in this regard.
Secondly, the data entry of income tax returns is being done in Islamabad replacing the old system operational at the Data Processing Units (DPUs) in all major cities.
Thirdly, collectors are reluctant to interpret law on their own, as clarifications are sought from the Board on petty issues. Fourth, most of the computer software are prepared on the concept of compilation of centralised database at the Board. Trade associations and chambers are encouraged to meet tax authorities in Islamabad rather than collectors/commissioners.
On the other hand, CBR said that presently all energies of the Board officials are being wasted in settling administrative issues. This requires maximum transfer of powers to the field formations for speedy processing of pending cases of taxpayers at the level of collectorate/commissionerate.
The CBR has observed that the field officers refer routine cases to the Board for decision, which needs to be discouraged. CBR has directed the Members to analyse the situation and finalise recommendations to give more powers to field officials so that the officials working in the headquarters should have enough time for policy formulation.