Pakistan mulls bifurcating FBR, Customs

ISLAMABAD: Pakistan has mulled over bifurcating the Federal Board of Revenue (FBR) and Customs with the consultations of the International Monetary Fund (IMF), citing sources, ARY News reported on Tuesday.

The recommendations have been forwarded to the caretaker government for the bifurcation of FBR and Customs. The FBR employees raised concerns over separating the Customs department from the revenue board, sources said.

They added that the tax experts and stakeholders opposed the FBR’s bifurcation plan. The experts warned that the move would affect the entire operations of Customs and FBR.

Under the bifurcation plan, the Federal Board of Customs would be established to handle enforcement-related operations, whereas, the FBR will control the revenue-related operations of the Customs department.

The experts urged to improve coordination between the FBR and the Customs through IT and intelligence reforms. The decision will affect inland revenue operations of both FBR and Customs besides making the tax collection system more complex.

They added that the government could increase tax collection through improved data integration between FBR, the State Bank of Pakistan (SBP) and the National Database and Registration Authority (NADRA).

The experts urged the caretaker finance minister to review the plan and hold consultations with the stakeholders.