Cabinet forms another committee on FBR’s restructuring

FBR's restructuring

ISLAMABAD: The federal government has established a new committee for the restructuring of the Federal Board of Revenue (FBR) and the digitization of its services.

Under the leadership of Caretaker Prime Minister Anwaarul Haq Kakar, the cabinet approved the formation of a high-powered committee, with the finance minister as its head. Other members include the ministers for privatization, commerce, information technology, law, and foreign affairs.

Earlier, on the directived of Caretake Finance Minister Dr Shamshad Akhtar, the FBR chairman had sent a summray to the federal cabinet, seeking the overhaul of the tax collection department.

The secretary of the Revenue Division submitted a summary to the cabinet outlining the goals of restructuring the FBR. The objective is to achieve a tax machinery revenue target to GDP ratio of 12.7% by fiscal year 2025 and 20% by fiscal year 2027.

The proposed changes include the creation of a Federal Policy Board, chaired by the finance minister, with a new mandate for the Revenue Division. Additionally, the proposal calls for the establishment of oversight boards for Customs and Inland Revenue, along with a Tax Policy Office within the Revenue Division.

The oversight boards will be led by an independent member chair and include secretaries of finance, commerce, and revenue, as well as industry experts. These boards will set key performance indicators and monitor performance in a manner similar to a corporate entity. Customs and Inland Revenue will be headed by director generals, who would report to the oversight boards.

The oversight boards’ composition will include the finance minister as the chairperson, along with the NADRA chairman, secretaries of finance, commerce, and revenue divisions, economists, subject-matter experts, and the director general of Customs.

On January 3, the SIFC approved the establishment of a five-member committee chaired by the FBR chairman for its restructuring.

Sources said that the top management of FBR has successfully delayed the proposed restructuring, as IRS officers expressed opposition to certain aspects of the reform exercise.

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