Interim Govt Forms Task Force to Bring Tax Reforms in Pakistan

Caretaker Finance Minister Dr. Shamshad Akhtar has constituted a task force on tax reforms in the Federal Board of Revenue (FBR). The task force will be headed by the finance minister whereas its members will include Dr. Manzoor Ahmed, Dr. Musharraf R Cyan, Amanullah Amer,  Aamir Ijaz Khan, Khalid Mahmood, Mehmood Khalid, Chairman FBR Malik Amjed Zubair Tiwana, and Dr Ardsher Saleem Tariq, Member (Reforms & Modernization), FBR as Secretary to the Task Force. The terms of references (TORs) of the task force include: The task force may interact with stakeholders and form sub-groups to co-opt any other person with the prior approval of the Finance Minister or avail services of any expert on a need basis. The task force will submit its recommendations within two weeks. Commenting on the development, the Pakistan Business Council (PBC) in a post on X said that if the purpose of an independent Tax Policy Board is to avoid knee-jerk, short-term, revenue-seeking measures that undermine the longer-term, sustainable, and equitable policy objectives, then the proposed Tax Policy Board should not only be independent of the FBR but also of the Ministry of Finance which approves the annual budget, otherwise the temptation to tinker will remain. The statement said that ideally, it should be part of the Ministry of Planning. It pointed out that the country’s tax policy requires all three – good planning, equitable development of the fiscal policy and special initiates to broaden the tax base. It also questioned the credibility of the intent for an independent tax policy unit, when the circular announcing its formation is signed by the FBR Chariman in his dual position as Secretary Revenue Division of the Ministry of Finance.