- Federal Tax Policy Board will be formed in the Revenue Division which will be responsible for the formulation of tax policy
ISLAMABAD: The caretaker federal cabinet has approved reorganisation and digitisation of the Federal Board of Revenue (FBR) after the recommendations of the inter-ministerial committee headed by the finance minister were presented.
The cabinet meeting presided over by the caretaker Prime Minister Anwaar-ul-Haq Kakar on Tuesday decided to approve the reorganisation and digitisation of the FBR on the recommendation of the Revenue Division.
The previous meeting of the cabinet held on January 23, 2024, constituted an inter-ministerial committee headed by the finance minister. It presented its recommendations to the cabinet which after discussion and making some changes in the summary of the last cabinet meeting, put up in today’s cabinet meeting, approved it.
In light of these reforms, the Federal Tax Policy Board will be formed in the Revenue Division, which will be responsible for the formulation of tax policy in the country, determination of revenue targets and cooperation between stakeholders. The Federal Policy Board will be headed by the federal finance minister.
As a result of the restructuring, Customs and Inland Revenue will be headed, separately, by Director Generals of the respective cadre.
The respective Director Generals would have complete authority over the administrative, financial and operational matters of their respective departments. Both the Director Generals will ensure the implementation of international best practices in terms of digitization, grievance redressal and transparency of their respective `departments.
There will be separate oversight Boards for Customs and Inland Revenue. Federal secretaries of finance, revenue, commerce, chairman NADRA,
and experts from related fields will be the members of each board while the finance minister will be its head.
The caretaker prime minister directed that it should be ensured that there is no conflict of interest while appointing experts from private sector to these Boards.
He also directed that in the light of the recommendations of the Cabinet Committee, the draft for all necessary legislation regarding the reforms should be submitted to the next elected Parliament for approval.
The caretaker prime minister and the federal cabinet acknowledged the work and efforts of the finance minister, chairman FBR, and concerned authorities for the preparation of these reforms.
The federal cabinet also approved the decisions made by the Cabinet Committee on legislative cases in the meeting held on 26 January 2024.
However, the Cabinet postponed the approval of the decision on the amendments to the IRSA Act, 1992, and directed that recommendations of the Ministry of Water Reservoirs after a thorough discussion, be submitted for approval in the next session of the federal cabinet.
Copyright Business Recorder, 2024