ECC approves Rs25bn plan to transform FBR

In order to reduce a startling tax gap of more than Rs6 trillion, the Economic Coordination Committee (ECC) of the cabinet on Tuesday approved five proposals to transform the Federal Board of Revenue (FBR) at an estimated cost of Rs25 billion. The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, also approved a technical supplementary grant for the Pakistan Post Office Department and the Election Commission of Pakistan (ECP) to hold local bodies elections in provinces and the federal capital. Rashid Mahmood Langrial, the FBR chief, and his reform team have worked out the transformation plan to lower the Rs6tr tax gap, of which Rs3.5tr is related to sales tax. Five proposals were drafted and previously approved by Prime Minister Shehbaz Sharif.