[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The interim government has opted to enforce a comprehensive restructuring plan for the Federal Board of Revenue (FBR). According to reports, the Apex Committee of the Special Investment Facilitation Council (SIFC) has greenlit the proposed reforms and restructuring plan for the FBR.
A summary is anticipated to be presented in the upcoming federal cabinet meeting for approval of the FBR’s restructuring plan. This presentation will follow the reception of the minutes from the latest SIFC committee meeting.
The outlined summary aims to actualize an action plan for the reorganization of Pakistan’s tax administration, reinforcing internal governance within the FBR.
Under the ongoing reform initiative, the caretaker government is considering the establishment of a dedicated Customs Board to oversee the operations of Pakistan Customs. This separation is intended to facilitate improved oversight for tracking smuggling and related activities, while the FBR will retain responsibility for revenue collection.
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Additionally, there is a proposal to form a separate Inland Revenue Board under the supervision of the Revenue Division. Alternatively, discussions are ongoing regarding the segregation of the tax policy function from the FBR.
As part of the tax reform program, five federal secretaries—Finance, Industries and Production, National Food Security, Commerce, and Interior—are slated to serve as ex-officio members of the Customs Board.
These restructuring endeavors within the FBR aim to mitigate apparent conflicts of interest in tax collection and elevate the overall efficiency of the tax machinery. Simultaneously, the FBR is embracing innovative digital technologies to expand the tax base and bridge gaps in tax policy and compliance.
Sources reveal that high-ranking FBR officials have engaged in several meetings with the SIFC to discuss the reform agenda, culminating in approval last Thursday.
Furthermore, the government has purportedly resolved to establish a new position of “Member Appraisement” within the Customs Department, aiming to separate the appraisement process from operational and enforcement functions.[/vc_column_text][/vc_column][/vc_row]
