ISLAMABAD: The federal government has embarked on an urgent mission to revamp its Revenue Generation Strategy and restructure the Federal Board of Revenue (FBR) to boost tax revenue. This initiative proposes the separation of FBR’s tax administration and policy functions.
The key meeting on restructuring and enhancing the revenue generation strategy for FBR will be chaired by Caretaker Prime Minister Anwar-ul-Haq Kakar upon his return from his visit to the United States.
As per sources, in line with the Prime Minister’s directives, drafts for restructuring and revenue generation strategy finalized to expedite short-term tax revenue growth. These drafts presented during the meeting presided over by the Prime Minister.
The restructuring plan, initially proposed in 2019, aims to refine and present it for approval. This proposal involves segregating the tax administration and policy roles of FBR from those of the Finance Ministry. Furthermore, it contemplates appointing one expert officer each from Income Tax, Sales Tax, Federal Excise Duty, and Customs as members of the Fiscal Policy Board, which will function as a subordinate body. The Secretary Revenue Chairman of FBR will also be part of this policy board.
Additionally, there are considerations to place Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) in Sindh and Balochistan under the jurisdiction of the Directorate General South.