LAHORE - A Memorandum of Understanding was signed between Punjab government and International Finance Corporation (IFC) which is a subsidiary institution of the World Bank at a local hotel here on Friday. Chairperson Punjab Revenue Authority Iftikhar Kutab and Manager Investment IFC Mugdi M Amin signed the document.

Chief Minister Shahbaz Sharif, Provincial Finance Minister Mian Mujtaba Shujaur Rehman, Secretary Finance, Secretary Information, concerned officials, Project Leader IFC Muhammad Hamood Baidar, Amjad Bashir, Investment Officer, Sajid Farooqi and other officials were present on the occasion.

Under the agreement, IFC will provide technical assistance in improving the efficiency of Punjab Revenue Authority and recovery system of general sales tax. IFC will also assist in further simplifying the working of Punjab Revenue Authority. IFC will not receive any charges for its technical assistance nor put any financial burden on Punjab government. Besides broadening registration base of GST and minimising technical flaws, IFC will also cooperate in the capacity-building of Punjab Revenue Authority.

Speaking on the occasion, Chief Minister Shahbaz Sharif welcomed the agreement between IFC and Punjab government for the capacity building of Punjab Revenue Authority and said that it will improve the tax recovery system as well as broadening tax base in the province. He said that Punjab government has taken revolutionary measures in the current budget for improving tax system and besides imposing tax on agri income, big houses have also been brought under tax net so that maximum revenue could be collected.

The Chief Minister said that under the agreement with IFC, basic reforms will be introduced in the sales tax system while tax system will be further simplified. He stressed the need for increasing tax to GDP ratio for collection of maximum resources for the development of the province and provision of better facilities to the masses. Shahbaz Sharif said that Punjab government is introducing reforms in the entire tax recovery system and he believed that the ratio of tax recovery in Punjab can be further improved through efficient tax machinery.