- Govt places the FBR political wing under the Ministry of Finance.
- Process to take a few months; Become operational from the ex-exercise.
- Office of tax policy to support the analysis of tax policies, proposals.
Islamabad: In his attempt to comply with the conditions of the International Monetary Fund (IMF), the federal firm has approved the separation of the Federal Board of Revenue tax policy (FBR), The news reported on Saturday.
The government has separated the FBR political wing from the operations agreed with the IMF and placed it at the Ministry of Finance.
However, this process will take a few months, so that the placement of the political wing in the Ministry of Finance could become operational from the financial year 2025-2026.
The evolution comes in the context of a substantial tax deficit of 386 billion rupees during the first half of the current financial year (July-December).
The collection of total income amounted to 5,623 billion rupees, down the target of 6,000 billion rupees.
The International Monetary Fund (IMF) had set an indicative target of 6,000 billion rupees for the period ending in December 2024. However, the net collection of the FBR only reached 5,623 billion rupees during the first period six months of the current financial year (CFY).
Meanwhile, the Ministry of Finance has already published a notification in this regard earlier this week after the approval of the firm.
According to the Tax Policy Office, will support the analysis of fiscal policies and proposals through the modeling of data, income and economic forecasts as well as the country’s international treaties and tax obligations.
The Tax Policy Office will fall directly from the Minister of Finance. The staff of the said office approved by the federal office are undertaken with the approval of the division of the establishment and the finance division in accordance with the general conditions prescribed by the government.
The responsibilities and the structure of the TPO can be modified as deemed necessary for its optimal operation with the approval of the federal firm.
The Minister of Finance, Muhammad Aurangzeb, explained to the business world that the government has decided to move the tax policy unit of the FBR and to accommodate it within the Ministry of Finance for the preparations for the budget of tax policy.