Pakistan Cabinet Set to Decide Fate of Federal Board of Revenue Today

Pakistan Cabinet Set to Decide Fate of Federal Board of Revenue Today

Nadia Nawaz | January 23, 2024 | 04:50 PM IST | Pakistan News, World | Follow on Google News

Pakistan Cabinet Set to Decide Fate of Federal Board of Revenue Today/ExpressTribune

Pakistan Cabinet Set to Decide Fate of Federal Board of Revenue Today

Prime Minister Anwaarul Haq Kakar has called for a crucial federal cabinet meeting on Tuesday to deliberate on the restructuring of the Federal Board of Revenue (FBR). This decision comes after significant consensus among stakeholders regarding the separation of the Inland Revenue Service (IRS) and the Customs Group, ultimately leading to the potential cessation of the FBR, established in 1944.

IRS and Customs Group Navigating Separation Terms

Finance Minister Dr. Shamshad Akhtar has abandoned the demand for independent heads of oversight boards for the Federal Customs Board (FCB) and the Federal Inland Revenue Board (FIRB). The FCB and FIRB are proposed to be detached departments of the Revenue Division, pending cabinet approval. The Customs Service and IRS have both agreed to the separation, with the Customs Service becoming an attached department of the Revenue Division, mirroring the Inland Revenue’s structure.

Key Stakeholders Reach Understanding with Military Intervention

Approximately 40% of total taxes are presently collected by the Customs Group, and the remaining 60% by the Inland Revenue. The Customs Group has conceded to becoming a withholding agent for income and sales tax collection, highlighting a significant shift in responsibilities. The restructuring, initiated after military intervention, aims to dissolve the FBR and establish two separate entities.

In addition to the aforementioned changes, a Federal Policy Board, chaired by the finance minister, will be established. Director generals for Customs and Inland Revenue will lead the separated organizations with administrative autonomy. Oversight boards, chaired by the finance minister, will be responsible for policy formulation, revenue targets, and coordination with stakeholders.

This transformative decision is expected to redefine the landscape of revenue collection and administration in Pakistan, addressing longstanding issues within the existing structure.

Nadia Nawaz

Nadia Nawaz – a new journo in digital journalism covers stories, reports/articles from Pakistan. Nadia writes on various topics, include Politics, Economy,Sports and finance. she further holds a high head in field of graphic designing. Nadia can be reached on nawaznadia20@gmail.com