The Special Investment Facilitation Council (SIFC), led by both civilian and military leaders, has given approval to a plan for restructuring the Federal Board of Revenue (FBR) and the Pakistan Revenue Automation Limited (PRAL). This restructuring includes collaboration with the National Database and Registration Authority (NADRA) and the introduction of a simplified scheme for retailers, set to be implemented within 15 days.
The SIFC’s Apex Committee, chaired by Prime Minister Anwaarul Haq Kakar, considered a Finance Division proposal. The committee granted permission for the federal government to discontinue subsidies on fertilizer, agriculture tube-wells, and spending on provincial public sector universities starting from the next financial year (FY) 2024-25.
During the meeting, Finance Minister Dr. Shamshad Akhtar suggested a new governance structure for the FBR. This structure involves establishing a separate Federal Board of Customs and Federal Board of Inland Revenue, each headed by Directors-General from their respective cadres. Oversight Boards for Customs and Inland Revenue Administrations will be created, chaired by independent professionals, ensuring public and private sector representation based on expertise and integrity.
The focus of these reforms is to strengthen governance with accountability through oversight boards. The Federal Policy Board will be reconstituted under the Finance Minister’s leadership, with the Secretary of the Revenue Division reporting to it. A Tax Policy Office will also be established under the Federal Policy Board, responsible for harmonizing assets valuation modalities, legal and regulatory frameworks, and promoting revenue and policy coordination.
The proposed reforms are set to be implemented within the existing resources allocated to the FBR. The Governor of the State Bank of Pakistan (SBP) recommended placing the audit function of the FBC and FBIR under the Tax Policy Unit (TPU) for independence.
The Apex Committee has in principle approved the implementation of the restructuring plan for the FBR, forming a special committee led by the Finance Minister. This committee will include cabinet members to conduct inter-ministerial consultations, with a summary to be moved to the cabinet for approval within two weeks.
Additionally, the restructuring of PRAL with NADRA has been given the green light. This includes rightsizing and a focus on technical human resources, Broadening to Tax Base (BTB), IT integration and transformation, including data analysts and Artificial Intelligence for BTB, and the reorganization of the IT Wing.
Chief of Army Staff Gen Asim Munir has urged chief ministers and chief secretaries of all provinces to initiate a nationwide crackdown against individuals hoarding fertilizers (urea) to sell at higher rates. The focus is on ensuring transparency in operations to benefit farmers across the country.