Seizing corrupt and orthodox system can help pick up tax collection.

• Author: Ahmed, Khalil
• Position: Renowned businessman Farooq Dadi on improving tax administration - Interview

Byline: Khalil Ahmed

Interview with Mr Farooq Dadi - a renowned businessman

Profile: Mr Farooq Dadi is a bona fide businessman having done his Honors and Masters in the subject of international relations from Karachi University. He was a student leader and was the Chairman of Pakistan Liberal Students (it was one of the leading student parties during 1970s). He started his career as a businessman but was more focused as a socio-economic activist. He used to identify leakage of revenue from Central Board of Revenue (CBR) which is now Federal Board of Revenue (FBR) and contributes 60 percent to our national budget.

He is still into business as an indentor, trader and is dealing in pharmaceutical raw material. He is also an active member of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chambers of Commerce and Industry (KCCI), Rotary International, Arts Council of Pakistan, Karachi University Alumni etc.

PAKISTAN and GULF ECONOMIST had an exclusive conversation with Mr Farooq Dadi about the tax collection and the facilities being provided. Following are the excerpts of the conversation:

The most important organization of the Pakistan government is Federal Board of Revenue (FBR). FBR consists of Income Tax, Sales Tax, Custom and Federal Excise and Taxation.

FBR's contribution in our national budget is approximately 60 percent, so this is the most important tax collection organization which controls almost everything. FBR needs to be revamped on war footage. Majority of the senior officers of FBR are not following Government of Pakistan code of conduct and violation of the code of conduct is very common.

These officers off course not all, are holding green cards, foreign citizenships etc. First of all, they should be scrutinized before they prosecute public, businessmen, industrialists etc. There should be strict scrutiny about these officers in terms of their dual nationality, green cards and the status of their children's education abroad. Our education system cannot improve unless the children of these officers study in Pakistan but they are least bothered about our local systems because after retirement their ultimate goal is to settle down abroad permanently.

A large number of FBR senior officers are the members of foreign organizations and NGOs such that Rotary, Lions etc. whereas Government of Pakistan's code of conduct SL 30 and SL 34 restricts them to be a part of these organizations as serving government...