The federal government has clarified that there will be no external intervention in the administrative affairs of Customs or Inland Revenue Service during the restructuring of the Federal Board of Revenue (FBR) agenda. The Finance Division issued a clarification, stating that the restructuring of the FBR is part of the government’s agenda to enhance its governance, efficiency, and effectiveness.
The clarification mentioned that certain proposals have been developed to rationalize and streamline the functions of the FBR, strengthen the FBR policy board, and improve overall governance, integrity, and performance. These proposals align with international best practices and aim to create a more accountable and effective revenue agency with a creative oversight structure.
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The restructuring will involve the creation of specialized administrative structures, accompanied by improved delegation and accountability of administration. The government is also considering establishing an institutional mechanism, such as a Tax Policy group, to facilitate the rationalization of the tax regime. This group will possess the necessary expertise and analytical capability to emphasize fairness and equity in the tax system.
The Finance Division emphasized that these proposals were formulated after months of deliberation and consultation with experts, academics, and senior leadership of the FBR and its members. Importantly, the government clarified that these proposals do not involve downsizing the workforce or any external interference in the administrative matters of Customs or Inland Revenue Service by any other agency or ministry.
The clarification responded to reports in digital media that misrepresented the objective and scope of the FBR reforms. The government aims to implement reforms that address the need for improving the tax-to-GDP ratio, ensuring a fair burden-sharing system, and providing tax and investment facilities to foster economic growth.
