Salman's appointment as FBR chairman hailed

The appointment of Salman Siddique as new Chairman of the Federal Board of Revenue (FBR) would help the tax managers to take tax policy decisions more independently to facilitate reforms in tax administration. Leading Karachi-based chartered accountants and tax consultants told Business Recorder here on Monday that the government has taken the right decision to appoint Salman Siddique as new FBR Chairman.
Presently, the FBR Chairman/Secretary General Revenue Division was practically reporting to Secretary Finance in all matters. The FBR Chairman was not independently taking any decision, but consulting the Secretary Finance even in petty matters. Practically, the FBR Chairman/Secretary General Revenue Division has the legal authority to take some decisions independently under the Federal Board of Revenue Act, they added.
Sources added that the FBR Act 2007 has empowered the tax officials to formulate policy for performance management rewards, incentives packages, golden handshake scheme and integrated management policy for the tax machinery. The FBR Act 2007 was implemented with the aim to setup an independent board would give legal sanctity to the ongoing reform process. Secondly, it will enhance operational and administrative autonomy of the FBR. Thirdly, board will take decisions with minimum interference of the Ministry of Finance. Fourth, it will meet the Human Resource Management (HRM) requirements needed for the reformed units.
In this case, the situation was entirely different and the FBR Chairman was reporting to Secretary Finance even in matters where the Board-in-Council of the FBR was allowed to take decision independently. Under the prevailing situation, a question was raised about the utility of two positions ie Secretary General Revenue Division and Secretary Finance in case FBR is not in a position to take decisions independently, a tax expert said. A top chartered accountant from Karachi apprehended that the change at the top level of the FBR may also result in reshuffling of some of the FBR Members.