The Inter-Ministerial Committee (IMC), led by Caretaker Finance Minister Dr. Shamshad Akhtar, continued its deliberations on Thursday regarding the restructuring of the Federal Board of Revenue (FBR). The committee aims to finalize a revised summary for submission to the federal cabinet by January 29, 2024.
The proposed restructuring plan seeks to broaden Pakistan’s tax base and increase the tax-to-GDP ratio. Key elements include the separation of Customs and Inland Revenue into distinct entities, each headed by a Director General with administrative and financial autonomy. Additionally, the establishment of oversight boards, such as the Customs Oversight Board and the Inland Revenue Oversight Board, is proposed to ensure effective governance and accountability. The Express Tribune+2Business Recorder+2App+2Profit by Pakistan TodayThe Express Tribune+1Profit by Pakistan Today+1
However, the plan has faced scrutiny. Some cabinet members have raised concerns about the caretaker government’s mandate to implement such significant reforms, suggesting that these decisions might be more appropriate for an elected government. Furthermore, questions have been posed regarding the potential complexities introduced by the creation of multiple oversight boards and the inclusion of private professionals in governance roles. The Express TribuneBusiness Recorder+1The Express Tribune+1
Despite these challenges, the IMC is working to address the concerns and refine the restructuring proposal. The final recommendations are expected to be presented to the federal cabinet in the upcoming meeting scheduled for January 30, 2024.
