ISLAMABAD: The Pakistan government has fulfilled another International Monetary Fund (IMF) condition by withdrawing key powers from the Federal Board of Revenue (FBR) and establishing a Tax Policy Office under the Ministry of Finance, as per a newly issued notification.
As per details, the government has separated tax policy formulation from tax collection to enhance transparency and efficiency. Under the new law, FBR will now focus solely on tax collection and implementation rather than policymaking.
The new Tax Policy Office will report directly to the Finance and Revenue Minister and will be responsible for developing reform agendas and analyzing tax policies and proposals.
The office will provide policy reports on income tax, sales tax, and federal excise duty, focusing on reducing fraud and strengthening tax enforcement mechanisms.
The FBR restructuring aims to enhance revenue generation, minimize tax loopholes, and improve overall economic governance.
The restructuring of FBR aligns with IMF commitments to ensure a more autonomous tax system.
