ISLAMABAD: The Pakistani government has taken a significant step to fulfill the fiscal conditions set by the International Monetary Fund (IMF) by revoking substantial powers from the Federal Board of Revenue (FBR).
A recent notification reveals that the government has restructured the FBR to improve transparency and efficiency in the tax system. Under the new structure, the FBR will focus solely on tax collection and enforcement, while the newly created Tax Policy Office under the Ministry of Finance will take charge of formulating tax policies.
This new office will report directly to the Finance and Revenue Minister and will be responsible for analyzing tax policies, proposing reforms, and generating reports related to income tax, sales tax, and federal excise duties.
The restructuring aims to strengthen revenue generation, close tax loopholes, and enhance economic governance, in line with IMF recommendations for a more independent and efficient tax system.
