Finance Ministry issues clarification statement on FBR restructuring

FBR

ISLAMABAD (Daily Point) — The federal government has asserted that there will be no external intervention in the administrative affairs of Customs or Inland Revenue Service during the restructuring of the FBR Agenda.

The finance division has issued a clarification, emphasizing that the restructuring of the FBR is part of the government’s agenda to enhance its governance, efficiency, and effectiveness.

Certain proposals, aligned with international best practices, have been formulated to rationalize and streamline FBR’s functions, fortify the FBR policy board, and improve overall governance, integrity, and performance. The aim is to establish a creative oversight structure that enhances accountability to the state and clients.

The introduction of specialized administrative structures will be accompanied by improved delegation and accountability of administration.

An institutional mechanism is under consideration to establish a Tax Policy group with the requisite expertise and analytical capability. This group aims to facilitate the rationalization of the tax regime, emphasizing fairness and equity.

The government has developed these proposals after months of deliberation and consultation with experts, academics, and senior leadership of the FBR and its members, according to the Finance Division.

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Additionally, the clarification highlights that these proposals exclude any measures related to downsizing the workforce or external interference in the administrative matters of Customs or Inland Revenue Service by other agencies and ministries.

Reports circulating on digital media regarding the restructuring of the Federal Board of Revenue are said to misrepresent the objective and scope of reforms. The reforms are deemed necessary to enhance the tax-to-GDP ratio, ensure fair burden-sharing, and provide for tax and investment facilitation.

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