ISLAMABAD: In a final attempt to garner support for a restructuring plan, Caretaker Minister for Finance Dr. Shamshad Akhtar visited the Federal Board of Revenue’s (FBR) headquarters.
Despite spending hours at the FBR headquarters, only the architects of the revamp plan agreed, as Akhtar struggled to convince the rest of the officers from the Inland Revenue Service (IRS) and Customs group.
Questions loomed regarding how the proposed plan would contribute to increasing the tax-to-GDP ratio, a goal without a clear strategy. The minister attributed challenges to a media campaign against the restructuring plan and assured that officers’ concerns would be addressed during the implementation stage. She indicated that the plan would be forwarded for cabinet approval.
During the meeting, FBR’s chairman defended the organization, stating that no information was leaked and that the media obtained details from the SIFC meeting minutes. The prolonged meeting failed to reach a consensus on the restructuring plan, with only a break for Friday prayer allowed.
Caretaker Finance Minister Dr. Shamshad Akhtar’s proposed plan outlined the establishment of a new governance structure for the FBR, including separate Federal Boards for Customs and Inland Revenue. The heads of these boards would be appointed from their respective cadres.
Independent high-caliber professionals would chair separate Oversight Boards for Customs and Inland Revenue Administrations, with members nominated based on criteria and expertise.
Reforms would focus on strengthening governance with accountability through oversight boards. The Federal Policy Board, reconvened under the finance minister, would report to the Federal Policy Board with a new policy mandate.
A Tax Policy Office, under the Federal Policy Board, would harmonize assets valuation modalities and oversee the legal and regulatory framework of taxation regimes. The proposed reforms would be implemented within the existing resource allocation of the FBR. The State Bank of Pakistan governor suggested placing the audit function of FBC and FBIR under the Tax Policy Unit to ensure independence.
