SIFC approves FBR overhaul, subsidy phase-out

ISLAMABAD: The Special Investment Facilitation Council (SIFC) jointly run by the civilian and military top brass has approved a plan for the FBR, PRAL restructuring with the Nadra and the introduction of a simplified scheme for retailers within a 15-day period.

The SIFC’s Apex Committee also considered a proposal of the Finance Division and granted its assent that the federal government may stop subsidy on fertilizer, agriculture tube-wells and expenditure on provincial public sector universities from the next financial year (FY) 2024-25. The committee met under the chairmanship of Prime Minister Anwaarul Haq Kakar recently and top official sources disclosed that Minister of Finance Dr Shamshad Akhtar proposed a new governance structure for the FBR to establish separate Federal Board of Customs and Federal Board of Inland Revenue and appointment of DGs from respective cadres as their heads.

It has been decided that the separate Oversight Boards for Customs and Inland Revenue Administrations to be chaired by independent high-caliber professionals and members of the board will include public and private sector representation which will be nominated based on proper criteria and right expertise and integrity. The focus of reforms will be on strengthening governance with accountability through oversight boards. The reconstitution of the Federal Policy Board under the minister for Finance with the secretary Revenue Division will report to the Federal Policy Board with a new policy mandate. The Tax Policy Office will be constituted with HR having right expertise including taxation and industry professionals under the Federal Policy Board which will look after harmonization of assets valuation modalities and legal and regulatory framework of taxation regimes and promote revenue and policy coordination. The proposed reforms will be implemented within existing allocation of resources of the FBR. The Governor SBP advised that the audit function of the FBC and the FBIR would be placed under the Tax Policy Unit (TPU) for ensuring independence.

The Apex Committee in principle approved the proposed implementation of the plan for restructuring the FBR, constituting a special committee led by the Finance minister and including the cabinet secretary, Establishment, the secretary Finance, Law, Revenue and the secretary/chairman FBR which would conduct inter-ministerial consultation as required by the Rules of Business and a summary to the cabinet will be moved within two weeks for approval.

The PRAL restructuring with the Nadra also got a green light to conduct PRAL restructuring and rightsizing with focus on technical HR, Broadening to Tax Base (BTB), IT integration and transformation including data analysts and Artificial Intelligence for BTB and developing of Mathematical Models. The reorganization of the IT Wing will also be done.

Chief of Army Staff Gen Asim Munir has asked the chief ministers and chief secretaries of all provinces to initiate a nationwide crackdown and take strict action against those individuals engaged in hoarding of fertilizers (urea) to sell it at a higher rate to farmers, unethically expanding the dealer margins. He said fertilizer wholesalers and retailers must ensure transparency of operations for facilitating farmers across the country.