ISLAMABAD: A plan for the FBR, PRAL restructuring with the Nadra, and the implementation of a simpler scheme for retailers within a 15-day timeframe has been authorized by the Special Investment Facilitation Council (SIFC), which is jointly run by the senior brass of the military and civilian sectors.
The Apex Committee of the SIFC also had a look at a proposal from the Finance Division and approved it, allowing the federal government to discontinue funding provincial public sector colleges, tube wells, fertilizer, and agricultural starting in the upcoming fiscal year (FY) 2024–2025. Top official sources said that Minister of Finance Dr. Shamshad Akhtar recommended a new governance structure for the FBR to establish separate Federal Board of Customs and Federal Board during the committee’s latest meeting, which was chaired by Prime Minister Anwaarul Haq Kakar.
It has been decided that independent professionals of the highest caliber will chair the respective Oversight Boards for the Customs and Inland Revenue Administrations. Members of the board will include representatives from the public and private sectors, who will be nominated based on appropriate standards, appropriate expertise, and integrity.
Strengthening governance and accountability through oversight boards will be the main goal of the reforms. A new policy mandate will be reported to the Federal Policy Board upon its reconstitution under the minister of Finance, who will be assisted by the secretary of the Revenue Division. Under the Federal Policy Board, the Tax Policy Office will be established with HR experts with the appropriate competence in taxation and industry, and it will oversee the harmonization of asset valuation procedures as well as legal and regulatory matters.
The suggested changes will be put into effect within the parameters of the FBR’s current resource allocation. In order to maintain independence, the Tax Policy Unit (TPU) will oversee the audit functions of the FBIR and the FBC, according to a directive from Governor SBP.
The plan to restructure the FBR was approved in principle by the Apex Committee. A special committee headed by the Finance Minister would be formed, comprising the cabinet secretary, the secretary of Establishment, the secretary of Finance, Law, and Revenue, and the secretary/chairman of the FBR. The committee would conduct interministerial consultations as mandated by the Rules of Business, and within two weeks the cabinet would receive a summary for approval.
The PRAL reorganization and rightsizing with the Nadra also received approval, with the main objectives being technical HR, BTB (Broadening to Tax Base), IT integration and transformation, which includes data analysts and artificial intelligence for BTB, and the creation of mathematical models. Additionally, the IT Wing will be reorganized.
General Asim Munir, the Chief of Army Staff, has instructed all province chief ministers and secretaries to launch a nationwide investigation and take severe measures against those who hoard fertilizer (urea) in order to sell it to farmers at a higher price, thereby unethically increasing dealer margins. He stated that in order to support farmers around the nation, fertilizer wholesalers and retailers needed to guarantee operational openness.
