Chapter # 04

Conclusions And Recommendations

Chapter # 04

Conclusions and Recommendations

4.1: CONCLUSIONS:
From all of the above observation and report study we conclude that,
Federal board of revenue is the supreme federal agency of Pakistan that is
responsible for the government of Pakistan regarding taxation. The Central Board
of Revenue (CBR) was created on April 01, 1924 through enactment of the CBR
Act, 1924. In 1944, a full-fledged Revenue Division was created under the
Ministry of Finance. After independence, this arrangement continued up to 31st
August 1960 when on the recommendations of the Administrative Re-organization
Committee, CBR was made an attached department of the Ministry of Finance. In
1974, further changes were made to streamline its functions. Consequently, the
post of Chairman, CBR was created with the status of ex-officio Additional
Secretary and Secretary Finance was relieved of his duties as ex-officio Chairman
of the CBR.
Two additional achievements during 2006-07 are the enhancement of direct tax
base and the completion of the process of re-organization of field offices on
functional lines. With 20% increase in tax base, the number of NTN holders has
jumped from 2.1 million to 2.52 million during the last two years.
The Federal Board of Revenue (FBR) is responsible for the collection and
administration of federal tax revenues in the country. It collects both direct and
indirect tax revenues. The direct taxes include Income Tax (IT), Workers Welfare
Fund (WWF), Workers Profit Participation Fund (WPPF) and Capital Value Tax
(CVT). On the other hand, Indirect Taxes collected by FBR include Sales Tax,
Customs Duties and Federal Excise Duty. The FBR collection from these taxes
contributes around 95% of total federal taxes while remaining relates to surcharges
which are too collected by FBR.

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Conclusions And Recommendations
The tax is charged on the total income of an income year at the rates laid down in
the Ordinance. Total income means the sum total of income of a tax-payer from all
sources and the income year normally means the financial year (1st July to 30th June)
immediately preceding the assessment year.
In every financial year FBR achieves its target as much as possible.
FBR is struggling to increase the GDP ratio for every financial year and it is should be
mentioned that they are access in the given target of GDP.
Most of FBR tax revenue collects through income tax compare to sale tax and federal
excise duty.
There is a well organize structure which contain a large staff members.
Tax payers increase due to the new tax policy of e-filling method.
Government of Pakistan given 3 years exemption for flood affected areas, which in
result in decrease tax Revenue on side while other side it is a chance for tax payers to
improve their ability to pay taxes.
Under and over-invoicing is an international phenomenon. The complexity in
technical calculation and the delicacy of it usually leads to tax evasion. In order
to curb this menace, FBR has established the Valuation Wing so that assessment
of the imports is carried out on scientific lines all across the country.

4.2: RECOMMENDATIONS:
There are the following recommendation be included for improvement the nature FBR,
There should be clearer goal and mission and every employees should know about
them.
For achievement of FBR goals there should be a proper chain of communication and
monitoring and should involve all staff members for achieving any goals direction.
There should be a proper reward system so that the performance of employees become
well.
Should avoid absenteeism of employees.
There should be a proper system of inspection and monitoring in FBR.
To create Trust, Government should make Effective measures through using
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Conclusions And Recommendations
media channels and opinion leaders to inform the public regarding revenue
expenditure on development, welfare & genuine betterment of countrys
Infrastructure and facilities would boost and encourage people to pay taxes
more willingly and honestly Tax payer education measures should be made
more broad based and interesting to attract larger attention of all stake holders
in Pakistans economy.
FBR should be attentive regarding the modern technology in the taxation
system.
Stress should be thrown on Employee Perception Survey in order to make
successful reforms.
Whistle blowing is the concept of modern world countries (developed
countries), it is basically a right to speak out or make a cry when the colleagues
or in surrounding something is happening that breaches the law.
For the huge amount of tax collection it is necessary to control the refunds and
exemption certificates to the large industries and businesses.
For the awareness of taxpayers about the importance of tax for the progress of
economy and expansion of business, FBR should be arrange seminars, media
programs, and issuing of monthly, quarterly, semi-annually and annual reports
in newspapers and business journals.
At last, all the FBRs top management, middle management, and lower
management should be ready for the tax collection honestly and sincerely, to
promote economic situation of Pakistan.

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Conclusions And Recommendations

Questionnaire Analysis:
I made a questionnaire of 10 Questions for collecting primary data about tax
collection procedure. From the above questionnaire, I collected data from 20
workers in FBR (RTO) Peshawar which we can analyze below,
From all the above personal questions NO: 1, 2, 3 more than 80% workers satisfy
from their salaries and performance of FBR.
In question NO: 4, more than 80% responders gave answers in (good).
In question NO:6, all responders gave answers (YES)
In question NO: 7, more than 90% employees answered about tax collection
(monthly) basis.
In question NO: 8, more than 90% responders answered (90% ).
In question No:9, all the responders answered the major tax head (income tax)
In question NO:10, 80% people answered more income tax collection through
(salaries)

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Conclusions And Recommendations

REFERENCES:
Sher Afridi,Bahadar (2010). FBR annual
www.fbr.gov.pk,retrieve 10 September 2012.

report.

retrieved

from

Ahmad Basher (2011), FBR tax ordinance , ed.11th, published by facilitation and
taxpayers education wings, place of publication Pakistan, pp. 198-213
Federal board of revenue,(2011),FBR tax ordinance book ,11th edition, published
by FBR,islamabad,pp30-120.
Khan, Insp.Azam (2012, Aguest 24). tax collection procedure. (Sanaullah,
Interviewer)
Khan, Shoukat Hayat. (2000,september). FBR Annual Report. Retrieved Aguest
19, 2012, from http://www.fbr.gov.pk
Alam, J. (2011). Analysis of fbr. lahore: Busniess magazine week.

Annual report of Federal board of revenue, RTO Peshawar, FY2002-03.

Annual report of federal board of revenue, RTO Peshawar ,FY2004-05
Annual report of Federal board of revenue, RTO Peshawar, FY2006-07.
Annual report of Federal board of revenue, RTO Peshawar, FY2008-09.
Annual report of Federal board of revenue, RTO Peshawar, FY2010-011.

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SANA ULLAH Internship Report on FBR (RTO) Peshawar