The major functions of Tax Reforms Unit include the following:
- Commission and coordinate tax policy analysis via outsourced tax experts for the Finance Department and three tax collecting entities- PRA, E&T and BOR.
- To facilitate in developing Punjab Tax Revenue Mobilization Plan.
- Collect data and perform surveys on economic and sectoral areas as needed.
- Provide advice on the impact of existing and alternative tax policy on both provincial revenue collection and taxpayers, as well as any associated impact on the macro-economy
- Estimate the administrative and compliance cost associated with current tax system, as well as assessing the consequences of new tax measures for each PRA, BOR, and ETD
- Use micro-simulation models to estimate the level of tax incidence, efficiency of the tax system, and the extent of revenue responsiveness of individual tax types (Sales, Excise, Property, Other)
- Conduct periodic performance reports on the major taxes (Sales, Excise, Property, Other)
- Prepare monthly reports on the performance of revenue collections by agency (PRA, BOR, E&T) and by tax type (Sales, Excise, Property, Other), and providing explanations for anomalies and highlighting any emerging trends.
- Produce an annual tax expenditure analysis for each tax type (Sales, Excise, Property, Other)
- Examine fiscal federalism issues including estimating double taxation effects, fiscal decentralization from federal to provincial as well as provincial to local/district
- Compare tax regimes of other subnational governments (within Pakistan and internationally) to gauge performance of major tax types in an international setting
- Conduct ad hoc research activities related to tax policy issues in response to requests from the three tax collecting agencies
- Disseminate the results on a timely basis, and ensure the results are incorporated into FD’s, PRA’s, BOR’s, and E&T’s strategic plans.