Mohsin Siddiqui (Chief Reporter)
The caretaker government has successfully concluded the comprehensive restructuring plan for the Federal Board of Revenue (FBR), with approval granted by the Apex Committee of the Special Investment Facilitation Council (SIFC). This strategic move aims to bring significant reforms to Pakistan’s tax administration.
In the upcoming federal cabinet meeting, a summary of the FBR’s restructuring plan is expected to be presented for approval. This step follows the meticulous review of the last SIFC committee meeting’s minutes, ensuring a thorough consideration of all aspects.
The restructuring plan emphasizes the establishment of a dedicated Customs Board to oversee the operations of Pakistan Customs, a crucial element in the ongoing reform agenda. This separation will enhance the ability to track smuggling activities while keeping revenue collection within the FBR’s mandate. Additionally, there is a possibility of creating a separate Inland Revenue Board under the Revenue Division’s supervision.
As part of the tax reform program, five federal secretaries, including Finance, Industries and Production, National Food Security, Commerce, and Interior, are set to become ex-officio members of the Customs Board, contributing to a more holistic approach.
One of the key benefits of the FBR’s restructuring measures is the elimination of apparent conflicts of interest in tax collection, thereby enhancing the overall performance of the tax machinery. The government is also steering towards innovative digital technologies to broaden the tax base and minimize the gap in tax policy and compliance.
Sources reveal that high-ranking officials from the FBR have engaged in several meetings with the SIFC, culminating in the approval of the reform agenda on the last Thursday.
In a parallel development, the government is reportedly creating the position of “Member Appraisement” in the Customs Department. This move aims to separate appraisement from operations and enforcement, streamlining processes and ensuring efficiency. Another proposal on the table is the separation of the Tax Policy function from the FBR, marking a significant step towards improved governance.
