Tax Policy Office to draft Budget 2026–27 as govt shifts policy role from FBR to Finance Division

The federal government has amended the Rules of Business, 1973 to transfer tax policy functions from the Federal Board of Revenue (FBR) to the Finance Division, formally assigning the role to the newly established Tax Policy Office (TPO), Business Recorder reported. 

Under the revised framework, the TPO will be responsible for preparing tax proposals for the federal budget 2026–27, including the Finance Bill covering income tax, sales tax and federal excise duty.

The amendments were issued by the Cabinet Division through SRO 687(I)/2026 dated April 24, 2026. The changes include the addition of a new sub-clause in Schedule-II to formally place the TPO under the Finance Division and entrust it with tax policy responsibilities.

Officials said the move separates policy formulation from tax administration, with the TPO handling policy matters while the FBR continues to manage operational and administrative functions.

Sources indicated that the creation of the TPO would make the existing Policy Board redundant, as tax policy functions are now consolidated within the Finance Division.

The amendments also place the Strategic Digital Wallet Company under the administrative control of the Finance Division.

In addition, the Pakistan Information Commission has been shifted to the Information and Broadcasting Division. The updated rules require government divisions to respond to queries from other divisions within three working days.

The revised framework also mandates that any summary submitted to the Cabinet Division involving amendments to laws or rules must include a comparative statement outlining existing and proposed provisions.

Officials said the restructuring is aimed at strengthening the institutional framework for tax policy formulation ahead of the upcoming budget cycle.