Zubair Tiwana unveils FBR restructuring plan to Senate Standing Committee

Federal Board of Revenue (FBR) Chairman Zubair Tiwana has said that the Special Investment Facilitation Council (SIFC) has approved the restructuring of the board, reported the 24NewsHD TV channel.

He was briefing to a meeting of the Senate Standing Committee on Finance convened in Islamabad on Wednesday.

FBR Chairman Tiwana revealed that the SIFC has set a tight deadline of 30 days for the implementation of the restructuring plan.

 FBR presented a short to medium-term plan, marking a significant shift in the organization's modus operandi, he said.

Under the newly sanctioned structure, two distinct entities, the Federal Board of Customs and the Federal Board of Inland Revenue (IR), will emerge.

These boards will be helmed by separate director generals from the customs and Inland Revenue service groups, establishing a direct reporting line to the finance minister, Tiwana hinted.

Highlighting the depth of the reforms, Chairman Tiwana disclosed plans for a substantial overhaul of tax laws.

FBR chairman continued that a thousand amendments are slated for implementation, with the Ministry of Law expected to provide its crucial opinion on this legislative transformation. Some laws will be entirely new, while others will undergo necessary amendments. FBR cannot comment on this law-making process.

Implementation of the short to medium-term plans is already underway, with the formation of the FBR Restructuring Implementation Committee tasked with strategic execution before the upcoming general elections.

The revamped structure abolishes the existing form of the FBR, transferring the responsibility for formulating income tax, sales tax, and federal excise policies to the Revenue Division.

This division, led by the Secretary of the Revenue Division, will house a tax policy office known as the Federal Policy Board. Post-restructuring, the tax policy will fall under the jurisdiction of the finance ministry.

To ensure effective oversight, an eight-member board comprising secretaries from the finance ministry, commerce ministry, and foreign ministry will scrutinize the affairs of the FBR.

Senator Sadia Abbasi reacted, what is the hurry to SIFC?

“Caretaker government cannot make any legislation,” she said.

Senator Farooq Naik hinted that the task of the caretaker government is to carry out the day-to-day affairs.

The committee summoned the Law Minister.

Senator Salim Mandviwala should appear in the next meeting and tell the law minister.

Reporter: Waqas Azeem