ISLAMABAD: The caretaker government has finalised the restructuring plan of the Federal Board of Revenue (FBR). According to sources, the Apex Committee of the Special Investment Facilitation Council (SIFC) has given approval of the FBR’s reforms and restructuring plan.
A summary is likely to be moved in the next meeting of the federal cabinet for the approval of the FBR’s restructuring plan.
The summary will be moved after receiving minutes of the meeting of the last SIFC committee meeting.
Restructuring of FBR: Customs to be separated from revenue collection mechanism, says Dr Shamshad
The summary would ensure the implementation of an action plan for restructuring Pakistan’s tax administration. It would also strengthen the internal governance of the FBR.
The caretaker government is likely to constitute a special Customs Board to manage the affairs of Pakistan Customs under the ongoing reform plan.
The Customs will be separated from the revenue collection mechanism for tracking the smuggling and other elements, while the revenue collection will remain a mandate of the FBR. A separate Inland Revenue Board may also be established under the supervision of the Revenue Division.
Under the tax reform program, five federal secretaries, including Finance, Industries and Production, National Food Security, Commerce, and Interior will be ex-officio members of the Customs Board.
The restructuring measures in the FBR will remove the apparent conflict of interest in tax collection’ as well as enhance the performance of the tax machinery.
The FBR is also moving towards innovative digital technologies that would help broaden the tax base and minimise the tax policy and compliance gap
Sources said that the FBR high-ups have conducted a number of meeting with SIFC on the reform agenda of the FBR subsequently, it approved on last Thursday.
The government has also reportedly decided to create a new post of “Member Appraisement” in the Customs Department to separate the appraisement from operations and enforcement. Another proposal is to separate Tax policy function from the FBR, sources added.
Copyright Business Recorder, 2024