The Federal Board of Revenue (FBR) has scrapped the project of creating FBR ''Inland Revenue Wing'', and re-constituted the structure of FBR on functional basis, with 12 members in four categories of operations, functional, policy and support.
According to an FBR order issued here on Tuesday, 12 members would include Member Customs Operations, Member Domestic Operations (North), Member Domestic Operations (South), Member Facilitation and Taxpayer Education, Member Enforcement and Accounting, Member Taxpayer Audit, Member Direct Taxes, Member Indirect Taxes, Member Customs (Policy), Member Strategic Planning, Research and Statistics, Member Legal and Member Administration and Human Resources.
The FBR has issued an office order to carry out functional integration of tax administration. There would be separate members for direct taxes, indirect taxes and customs department under revamped organisational structure. However, there is no post of FBR Inland Revenue Wing under the revamped structure of tax machinery.
Through another office order, FBR has appointed Ihsanul Haq, (ITG/ BS-21), Member (Facilitation and Taxpayer Education); Zafar ul Majeed, (CEG/ BS-21), Member (Strategic Planning & Statistics) (he shall continue as Project Director Tax Administration and Reforms Project (TARP) in addition to his own duties; Muhammad Ramzan, (CEG/ BS-21), Member Operations (Domestic Operations South), he would also look after the work of Member Legal; Mehmood Alam, (CEG/ BS-21), Member Policy (Indirect Taxes); Hafiz Muhammad Anees, (CEG/ BS-21), Member (Taxpayer Audit); Munir Qureshi, (CEG/ BS-21), Member Operations (Customs), he shall also hold the additional charge of the post of Member Policy (Customs); Chaudhry Muhammad Azam, (Sectt/ BS-21), Member (Administration and Human Resources); Muhammad Saeed Khan (ITG/ BS-21) Director General Special Initiatives; Khalid Aziz Banth, (ITG/ BS-21) Member Policy (Direct Taxes); Aziz Ahmad Bilour, (ITG/ BS-21) Member Operations (Domestic Operations North) and Shahid Azam Khan, (ITG/ BS-21) has been appointed as Member (Enforcement and Accounting). Mumtaz Haider Rizvi and Afzal Naubahar Kayani will handle only those matters as assigned by the Secretary Revenue Division.
When contacted, tax officials told Business Recorder that the powers, jurisdiction and functions of the new members would clearly specify duties of each member under reforms. The post of the Member Information Management System (IMF) has been converted into the Director General IMS, who would handle all IT related issues under reforms. Secondly, the post of FBR Member Inspection and Internal Audit has not yet been abolished, which might work under administration department.
Sources said that the members of operations might deal with the issues of broadening the tax base, recovery of arrears, revenue collection and other enforcement related issues. The position of Member Domestic Operations is likely to deal with the issue of sales tax, income tax and federal excise related issues. However, the FBR clarification on functions and powers of members would clarify the enforcement related functions of Member Enforcement and those being carried out by the Members Domestic Operations North and South.
In the new structure, the jurisdiction of Member Domestic Operations (North) may cover Peshawar, Rawalpindi, Lahore, Multan, Sambrial and Faisalabad. The jurisdiction of Member Domestic Operations (South) may cover Karachi, Hyderabad, Quetta and Gwadar.
Under the new organisational structure, the posts of Chief Collector of Customs, North, and Chief Collector of Customs, South, have not been abolished. They would continue to provide senior level operational heads in the field so that day to day operational issues faced by the Collectorates and by the clients of the Customs department are addressed to and resolved expeditiously, enabling the Board to concentrate on Policy development and formulation.
Chief Collectors will continue to report to Member (Customs), sources added. According to the order, the FBR, headed by the Chairman, shall henceforth have twelve members, distributed along four broad functional categories ie Operations, Functional, Policy and Support.
These categories shall comprise of the following Members:
OPERATIONS CATEGORY: Customs, Domestic Operations (North) and Domestic Operations (South). The members of Domestic Operations would cover sales tax, income tax and federal excise duty. The Functional category would cover the following members including Functional and Taxpayer Education, Enforcement and Accounting and Taxpayer Audit.
THE POLICY CATEGORY WOULD COVER THE FOLLOWING FBR MEMBERS: Direct Taxes, Indirect Taxes and Customs. The Support members would include Strategic Planning and Research and Statistics, Legal and ''Administration and Human Resources''. The above functional re-organisation is being carried out in exercise of the powers contained in clause (h) of section 4 of the Federal Board of Revenue Act, 2007.
The FBR office order has specified that the FBR is undergoing a comprehensive reform process under aegis of the Government of Pakistan''s Tax Administration Reform Project (TARP). Administrative structure of FBR''s field formations has already been re-designed into Large Taxpayers Units, Regional Tax Offices and Model Customs Collectorates along functional lines. In the next phase of reform process, the structure of FBR itself is required to be reconstituted into functional categories.