The federal government has stripped the Federal Board of Revenue (FBR) of its tax policy-making authority to fulfill another condition of the International Monetary Fund (IMF).
A notification has been issued to establish a Tax Policy Office within the Ministry of Finance which will now handle all tax policy formulation independently of the FBR.
The newly formed office will report directly to the Federal Minister of Finance and Revenue and will focus on creating a government-focused reform agenda. It will analyze tax policies and proposals using data modeling, revenue assessments, and economic forecasting to ensure informed decision-making.
This comes as IMF had been assured that tax policy-making and collection would remain independent to enhance transparency and efficiency. Sources told ProPakistani that the Tax Policy Office will prepare reports on income tax, sales tax, and federal excise duty (FED) policies for the finance minister, while FBR will concentrate solely on implementing tax measures to boost revenue.
Efforts will also be made to tighten tax enforcement by addressing loopholes and combating tax fraud, sources added.
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