World Bank rates the performance of KP, revenue mobilization & Resource Management, programe as satisfactory
ISLAMABAD, Jan 13 (SABAH): World Bank (WB) has rated the performance of the Khyber Pukhtunkhwa, revenue mobilization and Resource Management, programe as satisfactory. Government cash to the tune of Rs.185.868 billion was found to be deposited in commercial banks, by the KPK departments and it has been decided that 60 percent or Rs.74.347billion of such cash to be brought back to Single Treasury Account (TSA) by June 2024.
According to the project review paper available with this organization, prepared by KPK government and WB staff, stated that the progress towards achievement of program development objective was found satisfactory. Own source tax revenue of the Government of KP has increased from Rs.14.3 billion in FY19 to Rs.43 billion in FY23 and target for June 2024 has been set at Rs.153 billion. Underpinning this achievement, the filing compliance of the services sales tax has improved from the 51 percent baseline to 77 percent in FY2022.
The number tax instruments have been reduced from 13 to 8, the KPK revenue authority has developed risk based audit plan and it’s manual is yet to be completed, a consulting firm is being hired to finalize the risk based audit methodology for the taxpayers.
Similarly, a consulting firm was hired to analyze the impact of General sales tax on Provincial Services and Property tax on properties owned by women in the province, however, it was unable to furnish it’s recommendations and findings.
Federal Board of Revenue and KP Revenue Authority have signed MOU setting forth responsibilities for information exchange. Year 1-3 targets have been achieved. A data integration plan has been approved by Cabinet. KPRA has established data linkages with four agencies – including Water and Sanitation Project, KP information technology board, KP accountant general office and MOL Pakistan. KP Excise & Taxation Department and Board of Revenue have also confirmed their readiness to integrate databases with KPRA. Third party has confirmed achievement of these targets. A firm is hired to develop data integration frame-work, accordingly the data will be stored in warehouse.
Based on detailed review of key business processes of tax authorities, an action plan has been prepared for business process simplification and harmonization. Progress on simplification and digitization of some processes is as follows, Under application functionality, Excise and Taxation Department has developed Motor Vehicle Registration System (MVRS) and streamlined processes related with Motor Vehicle Registration, MV Registration Renewal (Token Tax), and Motor Vehicle Transfer.
For Urban Property Tax, the department is testing the digitization of demand notice for the tax in selected districts. KP Revenue Authority has completed the registration portal, registration and enrollment of taxpayers, deregistration of taxpayers, filing of sales tax returns, payment of taxes, and notice management o BOR has completed land registration, land mutations, land title document (fard) issuance and stamp fee collections.
The Urban Immoveable Property Tax (UIPT) records of 7 cities in Abbottabad, Nowshera and Mardan districts have been updated, digitized and linked with the GIS map. Similarly, 22 percent of annual development funds have been allocated to unapproved projects in FY23, compared with 49 percent in FY18. In addition, 90 Tehsil Municipal Authorities have recorded payments in the Financial Management Information System throughout the FY23, supporting transparency and efficient resource management. Under component 2 of the Program, some progress has been noted for the implementation of e-Government functionality, including completion of the business process review for the automation of critical government processes, development and testing of the modules, providing extensive user training, and formal launch of tranche 1 activities (go-live) for selected departments on November 8, 2023. Remaining tranches of the e government system are expected to be launched during second half of FY24.