Finance Minister Shaukat Tarin unveiled an automated currency declaration system at the Federal Board of Revenue (FBR) headquarters.
Dr. Muhammad Ashfaq Ahmed, Chairman FBR/Secretary Revenue Division, Tariq Malik, Chairman NADRA, and DG FIA Sanaullah Abbasi were in attendance.
According to the minister, the government is focusing on economic documentation in order to broaden the tax base.
“This goal can only be achieved by combining technology and automation with a review of existing procedures and processes,” he said.
He went on to say that inter-agency coordination and cooperation were a must for the success of all efforts at business process re-engineering and the adoption of a new framework for rule and regulation implementation.
“To get the goal of documenting the economy and boost transparency in economic transactions, documentation of the flow of foreign currency into and out of the country is critical,” he added.
It is an uphill task for millions of passengers entering and exiting the country, especially with so few resources in comparison to the challenges faced by Pakistan Customs and other Law Enforcement Agencies (LEAs). Because the current Currency Declaration System (CDS) was not achieving the goal of complete documentation of foreign currency movement, FBR envisioned a new system.
This digital system was created with the help of NADRA and the FIA and will now be implemented at all international airports, beginning with Islamabad International Airport. “This new system will be a hassle-free and time-saving one-stop solution for all incoming and outgoing passengers,” said the Finance Minister.
This will result in increased visibility and data collection, which can then be used for analysis or auditing.
The data collected through POS and CDS will then be shared with all relevant agencies, including SBP, FIA, Customs, and the IRS, for any further action required by law.
This end-to-end visibility of the foreign currency market will provide a semblance of stability in the market while also aiding in the fight against money laundering and currency smuggling. Later, by pressing the button, Federal Minister for Finance and Revenue formally launched the ‘Automated Currency Declaration System.’
He also stated that the FBR was rapidly moving toward automation and digitization in order to promote transparency and reliability. During his presentation, he highlighted the key features of the ‘Automated Currency Declaration System,’ claiming that the system would save time while also ensuring credibility.
He went on to say that this digital intervention would capture Currency Declarations data not only at airports but also at land border stations where immigration desks were available and the FIA’s IBMS (Integrated Border Management System) was operational.
He praised NADRA and FIA in particular for providing critical assistance in realizing this digital intervention.
These significant synergies and long-term collaborations will undoubtedly contribute significantly to ensuring ease of doing business while also maximizing tax compliance, he concluded.