RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) is planning to spend an amount of Rs512.876 million ($4.899 million) for strengthening the FBR's capacity in fiscal research & tax policy analysis and establishing a Private Cloud Data Centre under the Trust Fund for Accelerating Growth and Revenue (TAGR).

Sources told Business Recorder here on Saturday that the new tax reform initiatives were agreed between the FBR and the World Bank (WB) under the implementation of the tax component of the Trust Fund for Accelerating Growth and Revenue (TAGR).

According to a communication of the Planning Commission with the FBR, the CDWP in its meeting held on December 23, 2016 considered the project and took the decision that the CDWP approved the project at a total cost of Rs512.876 million (US $4.899 million) as World Bank grant without local component.

The approved cost summary of the project revealed that Private Cloud Data Centre, Rs429.124 million; networking, Rs36.223 million; servers Rs132,223 million; storage & back-up, Rs150.230 million; Data Centre & Infrastructure, Rs.68.572 million; and Software, Rs41.876 million; and approved cost of project, ie, Strengthening FBR's Capacity in Fiscal Research & Tax Policy Analysis is Rs.83.752 million. Total approved Cost comes to Rs512.876 million.

The sponsoring agency may issue administrative approval of the project in accordance with the stated decision of the Central Development Working Party (CDWP). The implementation period of the project is 26 months (July 2016 to August 2018) which may be reflected in administrative approval accordingly, Planning Commission reportedly said.

Later, the FBR has told the Planning Commission that the implementation period of the said projects (i.e. July 2016 to August, 2018) does not reflect the actual position as per revised PC-I of TAGR project which has already been forwarded to the Planning Commission. The implementation period of the project Private Cloud Data Centre FBR is: starting Date, 1st January, 2017, and completion date 31st December 2017, while for the project Strengthening FBR's capacity in fiscal Research and Tax Policy Analysis, it is 26 months (January 2017 to February, 2019.

In view of the position as stated, the Planning Commission is requested that a revised authorisation letter of project showing correct implementation periods of both components as given in the revised PC-I, may be sent to the FBR so that administrative approval of the project may he issued accordingly, the FBR added.