Cabinet Greenlights Restructuring of FBR
Federal Tax Policy Board will be established to formulate tax policies, set revenue targets, and facilitate cooperation between stakeholders
Staff Report
The federal cabinet has approved a restructuring of the Federal Board of Revenue (FBR) to set up the Federal Tax Policy Board.
The Federal Cabinet, under the chairmanship of Caretaker Prime Minister Anwar-ul-Haq Kakar, has approved the reorganization and digitization of the Federal Board of Revenue (FBR) and the establishment of the Federal Tax Policy Board, based on recommendations from the Revenue Division.
The decision comes following a meeting held on January 23, 2024, where the recommendations of the inter-ministerial committee, headed by the finance minister, were presented to the cabinet.
The summary for approval underwent significant changes after extensive discussions and was subsequently approved in a recent cabinet meeting.
In light of these reforms, a Federal Tax Policy Board will be established within the revenue division.
This board will be tasked with formulating tax policies, setting revenue targets, and facilitating cooperation between stakeholders. The Federal Finance Minister will lead this policy board.
As part of the restructuring, Customs and Inland Revenue agencies will be separately headed by Director Generals of their respective cadres.
These Director Generals will have complete authority over the administrative, financial, and operational affairs of their agencies, ensuring the implementation of international best practices in digitization, grievance redressal, and transparency.
Oversight boards for Customs and Inland Revenue will be formed, with members including Federal Secretaries of Treasury, Revenue, Commerce, Chairman NADRA, and experts from relevant fields, with the Finance Minister as the head.
Caretaker Prime Minister Anwar-ul-Haq Kakar emphasized the importance of avoiding conflicts of interest when appointing private-sector experts to these boards.
The Prime Minister also directed that, in line with the cabinet committee’s recommendations, the draft for all necessary legislation regarding these reforms should be submitted to the next elected parliament for approval. He commended the tireless work and efforts of the concerned authorities in preparing these reforms.FBR and FMU To Combat Illicit Finance
Additionally, the Federal Cabinet approved the decisions taken in the Cabinet Committee on Legal Affairs meeting held on January 26, 2024.
However, the Cabinet deferred the decision on amendments to the Ursa Act 1992, presented on the recommendation of the Ministry of Water Reservoirs, for approval in the next federal cabinet meeting after discussions.
