FBR formulates SEP to ensure effective engagement with stakeholders

ISLAMABAD: The Federal Board of Revenue (FBR) has formulated a Stakeholder Engagement Plan (SEP) aimed at ensuring effective engagement with stakeholders throughout the duration of various ongoing tax reform initiatives.

One of these initiatives is the Pakistan Raises Revenue Project (PRRP), which centers on enhancing the Information and Communication Technology (ICT) infrastructure of the FBR nationwide.

The primary objective of this project is to foster a sustainable increase in domestic revenue by expanding the tax base and simplifying compliance processes.

The project is assessed to have moderate social risks, mainly related to exclusion and labor issues. It also carries moderate environmental risks, particularly concerning e-waste management. Therefore, the overall environmental and social risk rating for the PRRP project is categorized as “moderate.”

The PRRP project comprises two main components:

1. Component-1 focuses on streamlining the tax administration framework to make procedures more transparent and comprehensible for both taxpayers and tax administration personnel. It also entails the implementation of risk-based inspections and Post-Clearance Audits (PCA) in Customs, the enhancement of electronic services for taxpayers and traders, and the institutional development of the FBR to improve efficiency and accountability.
2. Component-2 of the PRRP aims to replace outdated ICT equipment in FBR offices throughout Pakistan. This includes upgrading the high-capacity data warehouse to support big data analysis and database integration. Additionally, it involves replacing equipment that has reached the end of its useful life in FBR’s data centers. The equipment to be replaced under Component-2 includes computers, printers, copiers, scanners, and networking components such as network switches, routers, and servers. This component also provides for the installation of vehicle/container scanners as part of the Pakistan Customs Automated Entry-Exit System (AEES) at seaports and airports.

The development of the SEP aligns with international and national environmental and social standards, such as the World Bank Environmental and Social Standards (ESSs), Environmental and Social Commitment Plan (ESCP), ESS10, as well as relevant national and provincial laws and Good International Industrial Practices (GIIP). Its purpose is to ensure effective stakeholder engagement throughout the project’s lifecycle.