ISLAMABAD: In compliance with an International Monetary Fund (IMF) requirement, the Pakistan government has stripped the Federal Board of Revenue (FBR) of key powers and established a Tax Policy Office under the Ministry of Finance, as per a newly issued notification.
The government has separated tax policy formulation from tax collection to enhance transparency and efficiency. Under the revised framework, FBR will focus solely on tax collection and implementation, while policymaking responsibilities have been transferred to the newly formed Tax Policy Office.
The Tax Policy Office, directly reporting to the Finance and Revenue Minister, will develop reform strategies and analyze tax policies and proposals. It will also provide policy recommendations on income tax, sales tax, and federal excise duty, aiming to curb fraud and strengthen enforcement mechanisms.
The restructuring is designed to boost revenue generation, close tax loopholes, and improve economic governance, aligning with Pakistan’s commitments to the IMF for a more autonomous tax system.
IMF Mission Assesses Transparency and Governance
On February 12, an IMF delegation visited the Auditor General of Pakistan for a briefing on audit procedures and public
