SIFC Approves Plans to Restructure FBR

The caretaker government has decided to implement a restructuring plan for the Federal Board of Revenue (FBR). In this regard, the Apex Committee of the Special Investment Facilitation Council (SIFC) has reportedly approved the FBR’s reforms and restructuring plan. A summary is likely to be moved in the next meeting of the federal cabinet to approve FBR’s restructuring plan. It will be moved after receiving the minutes of the last SIFC committee meeting. The summary would ensure the implementation of an action plan for restructuring Pakistan’s tax administration. It would also strengthen the internal governance at 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 smuggling and other elements, while revenue collection will remain a mandate of FBR. A separate Inland Revenue Board may also be established under the supervision of the Revenue Division. However, another proposal is to separate the tax policy function from FBR. 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 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 minimize the tax policy and compliance gap. Sources said that the FBR hgh ups have conducted several meetings with SIFC on the reform agenda of the FBR. It was approved last Thursday. The government has also reportedly decided to create a new “Member Appraisement” post in the Customs Department to separate the appraisement from operations and enforcement.