Mohsin Siddiqui (Chief Reporter)
The caretaker government has taken a significant step in enhancing the efficiency of tax administration by forming a high-level committee tasked with submitting precise recommendations for the restructuring of the Federal Board of Revenue (FBR).
Comprising four key members, including the FBR chairman, secretary Ministry of Finance, secretary Ministry of Commerce, and secretary Cabinet Division, the committee’s focus is to streamline and optimize the functioning of the FBR. These recommendations will be presented to the federal cabinet, aligning with the approval granted by the Special Investment Facilitation Council (SIFC).
In adherence to the SIFC’s mandate, the committee will meticulously work on specific restructuring proposals for the FBR. The objective is to introduce specialized administrative structures that facilitate improved delegation and enhance administrative accountability.
An integral part of the restructuring plan involves the establishment of an institutional mechanism, a Tax Policy group. This group, equipped with expertise and analytical capability, aims to rationalize the tax regime, emphasizing fairness and equity in tax administration.
The upcoming federal cabinet meeting is anticipated to review a summary seeking approval for the FBR’s restructuring plan. The summary will be presented following the finalization of recommendations by the four-member committee.
As part of the proposed reforms, there is a suggestion to form a special Customs Board. This board will independently manage the affairs of Pakistan Customs, focusing on tracking smuggling activities and other elements. Meanwhile, the revenue collection mandate will remain under the purview of the FBR, ensuring a more targeted and effective approach.
Additionally, there is contemplation on establishing a separate Inland Revenue Board, supervised by the Revenue Division. This move is aimed at further streamlining and enhancing the efficiency of revenue-related processes.
The comprehensive restructuring plan signifies a proactive approach by the caretaker government to optimize tax administration, promote accountability, and foster a fair and equitable tax regime.
