Prime Minister Shehbaz Sharif has warned the Federal Board of Revenue officers of outsourcing the whole system if the tax collection target is not met. But he was hopeful such a situation would not arise.

“Give me some plan. If this system continues, then it’s good. Then don’t force me I will probably go to the last point that I will have to outsource it,” he said after a ceremony held to honour the meritorious FBR members at an event in Islamabad on Saturday.

“But I will not relent. I won’t compromise at all. I will want the last penny in the coffers of Pakistan.”

The FBR officers who were given shields at the event would be honoured on August 14. The premier announced a Rs1m of cash reward for each officer.

He also spoke about the new steps taken to improve the tax recovery.

“We will induct new members or officers [for the the Appellate Tribunal Inland Revenue] and conduct their exams in LUMS or NUST and a high-level committee, on which no will have any doubt, will conduct their interview. Then we will appoint them,” he said after a ceremony held to honour the meritorious FBR members at an event in Islamabad on Saturday.

The government has enacted new legislation to expedite the recovery of disputed taxes.

The Appellate Tribunal Inland Revenue (ATIR), established under the law, would facilitate the swift recovery of taxes currently in litigation.

On Friday, President Asif Zardari signed the law, which became an act of parliament.

Around Rs2.7 trillion have been under litigation for the past 10 years, according to the FBR. At least 72,000 cases are pending at various forums and there are only 20 ATIRs, whose number is now being increased to 35 to expedite the process.

The premier shared that he had suggested Rs3 million salary for the tribunal members, however, the attorney general for Pakistan and the law minister asked him to not increase it more than the salary of a high court or Supreme Court judge.

He claimed that the committee would be based on justice as no one would be deprived of their due right. Its terms of reference (TORs) would be decided, the premier said.

PM Shehbaz has asked the finance minister and the board to hire lawyers from the market to recover the amount of taxes.

Under the new legislation, the members, equivalent to the high court judges, would be appointed through an open competition.

The commissioners will continue to hear cases of tax liabilities up to Rs10 million, whereas the other cases will be referred to the ATIR. The duration of the appeal in high courts has been reduced from 90 days to 30 days.

Also, read this

FBR orders educational institutes, retailers, other small businesses to install POS by July 1

Pakistan signs agreement with McKinsey to digitise FBR

FBR launches ‘Tajir Dost’ scheme with April 30 registration deadline

While quoting officials, he said Rs7,500 worth of sales taxes were “devoured” over the past three years.

The premier reiterated that the board’s ‘Track and Trace System’ was one of the major frauds in the nation. “We were not even wasting our time, but fooling each other,” he said and called for self-correction.

He stressed the need for working together to resolve issues. “Today, we should promise that we will serve Pakistan and surpass India. But it won’t be with talks. It needs constant hard work and untiring efforts.”