ISLAMABAD: The federal government has removed the Federal Board of Revenue’s (FBR) authority over tax policy-making, fulfilling another condition set by the International Monetary Fund (IMF).
According to an official notification, a Tax Policy Office has been established 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, focusing on a government-led reform agenda.
The office will analyze tax policies using data modeling, revenue assessments, and economic forecasting to support informed decision-making. This shift aligns with Pakistan’s commitment to the IMF to ensure tax policy-making and revenue collection remain separate, enhancing transparency and efficiency.
Sources indicate that the Tax Policy Office will prepare reports on income tax, sales tax, and federal excise duty (FED) for the finance minister. Meanwhile, the FBR will focus solely on implementing tax measures to boost revenue.
Additionally, efforts will be made to tighten tax enforcement, address loopholes, and combat tax fraud, sources added.
