Mohsin Siddiqui (Chief Reporter)
The Pakistan Business Council (PBC), a leading corporate advocacy platform in the country, has called upon the incoming government to ensure the successful execution of the Federal Board of Revenue (FBR) restructuring measures introduced by the caretaker administration.
In a statement posted on social media platform X, the PBC commended the efforts of the caretaker government and the Special Investment Facilitation Council (SIFC) in formulating the restructuring plan for the FBR and emphasized the critical importance of its effective implementation by the incoming administration.
The restructuring plan, recently approved by the caretaker federal cabinet, includes the establishment of a Federal Tax Policy Board within the Revenue Division, tasked with formulating tax policies, setting revenue targets, and fostering collaboration among stakeholders. Additionally, separate oversight boards for Customs and Inland Revenue will be instituted to enhance accountability.
Under the reforms, Customs and Inland Revenue will be independently led by Director Generals, granting them comprehensive authority over administrative, financial, and operational matters within their departments.
While these reforms mark significant progress, the onus of ensuring their comprehensive implementation lies with the incoming government, particularly with general elections looming on February 8.
The PBC underscored the consensus among political parties regarding the need to improve the tax-to-GDP ratio, broaden the tax base equitably, and devise growth-oriented policies. It highlighted the potential benefits of the FBR split, including sharpened focus on tax revenues and enhanced accountability through oversight boards.
Moreover, the PBC emphasized the importance of fiscal policy formulation independent of tax collection entities, suggesting that the Fiscal Policy Board report directly to the Prime Minister or the Ministry of Planning.
Caretaker Finance Minister Dr. Shamshad Akhtar previously highlighted Pakistan’s declining tax-to-GDP ratio, emphasizing the imperative to enhance tax capacity and increase the number of taxpayers, which currently stands at a mere 2.3 million.
In summary, the PBC’s advocacy underscores the urgency of effective governance reforms in the taxation system to bolster revenue generation, promote economic growth, and foster sustainable development in Pakistan.
