ISLAMABAD: The National Assembly on Wednesday approved the Federal Board of Revenue (Amendment) Bill, 2026, paving the way for the abolition of the FBR Policy Board through the omission of Section 6 and all ancillary references to the Board from the Federal Board of Revenue Act, 2007.
After the approval of supplementary grants, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb tabled the Federal Board of Revenue (Amendment) Bill, 2026, in the House for passage. The Senate had already passed the bill on June 18, 2026. The House approved the bill by a majority vote after rejecting amendments moved by Alia Kamran of JUI-F.
According to the statement of objects and reasons of the bill, “it is proposed that, while the powers to appoint the Chairman and Members of the Board shall continue to vest in the Federal Government, the Secretary, Revenue Division, shall also be empowered to appoint Members of the Federal Board of Revenue (FBR) through transfers and postings of officers in BS-21 and above placed at the disposal of the Federal Board of Revenue.”
READ MORE: Policy Board functions shifted to MoF: FBR Act 2007 will be amended: Aurangzeb
Furthermore, section 6 of the Federal Board of Revenue Act, 2007, provides for the establishment of a Policy Board mandated to provide policy guidelines in framing fiscal policy and achieving the goals and targets of the Board.
Recently, the Federal Government established a Tax Policy Office within the Ministry of Finance to independently analyse and develop fiscal policies on behalf of the Federal Government, thereby ensuring a clear separation between fiscal policy formulation and the revenue administration functions of the FBR.
The establishment of this independent Tax Policy Office renders the functions of the Policy Board redundant. Consequently, it is proposed to omit section 6 of the Federal Board of Revenue Act, 2007, along with all ancillary references to the Policy Board in the Act.
Copyright Business Recorder, 2026
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