In a move to adopt globally recognised practices for managing tax and revenue affairs, the federal cabinet on Tuesday gave the go-ahead to restructure and digitise the Federal Board of Revenue (FBR).
The approval was accorded in a meeting chaired by caretaker Prime Minister Anwaar-ul-Haq Kakar, on the recommendations of the Revenue Division.
The meeting was apprised of the recommendations of an inter-ministerial committee that held its meeting on the 23rd under the chair of caretaker finance minister.
During its previous meeting, effective amendments were made in the summary after a comprehensive debate which was submitted in the cabinet’s meeting today, PM Office Media Wing said in a press release.
“Given its constitutional and legal mandate, the caretaker government would only carry out the groundwork for the Federal Board of Revenue’s structural reforms, keeping in view the public interest, but legislation to effect these reforms would be left to the newly elected government,” the official minutes of the last cabinet meeting state.
Under the prescribed reforms, a Federal Tax Policy Board would be constituted in the Revenue Division that would be tasked to formulate tax policy, fixation on revenue targets and work for coordination among the stakeholders.
The federal minister for finance 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.