ISLAMABAD: The Federal Cabinet on Tuesday approved the restructuring and digitization of the Federal Board of Revenue (FBR).
The cabinet decided in a meeting held with caretaker Prime Minister Anwaarul Haq Kakar in the chair.
The Revenue Division had submitted recommendations on restructuring to the cabinet for approval.
The meeting was apprised of the recommendations made by an inter-ministerial committee in its 23rd meeting.
During its previous meeting, effective amendments were made to the summary after a debate, which was submitted in the cabinet’s meeting on Tuesday, PM Office Media Wing said in a press release.
نگران وزیراعظم انوار الحق کاکڑ کی زیر صدارت وفاقی کابینہ کا اجلاس۔
وفاقی کابینہ نے ریونیو ڈویژن کی سفارش پر فیڈرل بورڈ آف ریونیو کی تنظیمِ نو اور ڈیجٹائزیشن کی منظوری دے دی۔
وفاقی کابینہ نے کابینہ کمیٹی برائے قانونی امور کے 26 جنوری 2024 کو منعقد ہونے والے اجلاس میں کیے گئے… pic.twitter.com/tky1OKRme8
— Government of Pakistan (@GovtofPakistan) January 30, 2024
“Given its constitutional and legal mandate, the caretaker government would only carry out the groundwork for the Federal Board of Revenue’s structural reforms. The legislation to effect these reforms would be left to the newly-elected government,” the official minutes of the last cabinet meeting state.
Under the proposed reforms, a Federal Tax Policy Board would be constituted in the Revenue Division to formulate tax policy, fix revenue targets and work for coordination among the stakeholders.
The federal finance minister would head the Federal Policy Board. Under the new scheme, Customs and Inland Revenue departments would be separated and work under specific director generals in the relevant cadres who would also enjoy complete authority over the administrative, financial and operational matters.
Both officials would ensure the digitisation of their relevant departments and the implementation of globally recognised practices for transparency and addressing complaints.
The said departments would have separate oversight boards with the federal secretaries of ministries from finance, revenue, trade, National Database and Registration Authority (Nadra) chairman and relevant experts as its members whereas, the finance minister would head them.
The prime minister directed to avoid clash of interests during the appointment of experts from the private sector.
On the occasion, PM Kakar and the cabinet members lauded the ministers concerned and FBR chairman for the preparation of these reforms.
The International Monetary Fund (IMF) has suggested transforming the FBR into a single national tax authority or restructuring it as a federal tax agency with coordinated linkages across all provincial tax agencies.
