FBR 'proposes' abolishing Inland Revenue Officers' appointments

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to abolish the appointment of Inland Revenue officers in appellate tribunals, over potential conflicts of interest, ARY News reported citing sources.

According to sources, around 20 seats currently held by Inland Revenue officers in income tax appellate tribunals will be abolished and instead retired officers to be appointed on these positions to ensure neutrality.

The proposal is currently under consideration, and necessary legislation will be enacted to implement the changes. The FBR has clarified that the appointments of customs officers in customs appellate tribunals will remain unaffected.

The decision may have implications for the promotion prospects of Inland Revenue officers. Out of 52 IRS Grade 21 officers, 21 are currently appointed in appellate tribunals.

Also read: FBR seeks additional staff, logistics to address Rs7tr tax gap

The development came after Pakistan government fulfilled another International Monetary Fund (IMF) condition by withdrawing key powers from the Federal Board of Revenue (FBR) and establishing a Tax Policy Office under the Ministry of Finance, as per a newly issued notification.

As per details, the government separated tax policy formulation from tax collection to enhance transparency and efficiency. Under the new law, FBR will now focus solely on tax collection and implementation rather than policymaking.

The new Tax Policy Office will report directly to the Finance and Revenue Minister and will be responsible for developing reform agendas and analyzing tax policies and proposals.

The office will provide policy reports on income tax, sales tax, and federal excise duty, focusing on reducing fraud and strengthening tax enforcement mechanisms.

The FBR restructuring aims to enhance revenue generation, minimize tax loopholes, and improve overall economic governance.

The restructuring of FBR aligns with IMF commitments to ensure a more autonomous tax system.