Shehbaz Sharif Issues a Final Warning to FBR Officials
He told the FBR to speed up reforms. The government says 957 auditors raised audit capacity fourfold.
Prime Minister Shehbaz Sharif has issued a final warning to FBR officials over corruption and poor performance. He directed the department to accelerate reforms and introduce a faceless tax collection system.
In this article we set out the warning, the reform he ordered, and the tax figures the government is citing. Here is everything you need to know.
What Shehbaz Sharif told the FBR
The warning covers corruption and poor performance, and it is described as final. The two directions are faster reforms and a faceless tax collection system. The government says Pakistan's estimated tax gap has fallen from 6% to 5% of GDP over the past three years, and that 957 third-party auditors have increased the FBR's audit capacity fourfold. No official is named, and the faceless system is ordered rather than described as already in place.
Why it matters
A final warning raises the prospect of consequences if performance does not change, though no penalty is set out. The tax-gap claim is the government's, and it is a one-point fall, from 6% to 5% of GDP. The fourfold audit-capacity claim is tied to those 957 third-party auditors.
- The warning comes from Prime Minister Shehbaz Sharif
- It is aimed at FBR officials
- The grounds are corruption and poor performance
- Reforms are to be accelerated
- A faceless tax collection system is to be introduced
- The government says the tax gap fell from 6% to 5% of GDP
- 957 third-party auditors are cited for a fourfold rise in audit capacity
What this warning leaves open
- Which officials are accused.
- What the penalty would be.
- When the faceless system will start.
- An independent figure for the tax gap.
What happens next
The FBR is under orders to speed up reforms and introduce faceless collection. We will update this article if a start date or a named action against an official is announced.
Our verdict
Shehbaz Sharif has given FBR officials a final warning over corruption and poor performance and told the department to bring in a faceless tax system. The government says the tax gap fell from 6% to 5% of GDP and that 957 auditors quadrupled audit capacity.
Follow for more updates.
Frequently asked questions
Who issued the warning?
Prime Minister Shehbaz Sharif.
What must the FBR do?
Accelerate reforms and introduce a faceless tax collection system.
What does the government say about the tax gap?
That it fell from 6% to 5% of GDP over the past three years.
What changed in audits?
The government says 957 third-party auditors increased the FBR's audit capacity fourfold.
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