Business
Govt to create FBR, FBC for tax collections
The team of International Monetary Fund (IMF) suggested setting up a National Tax Authority in the medium term.
Islamabad: The government of Pakistan has decided to restructure tax collection and divide it into two institutions i.e. Federal Bureau of Revenue (FBR) and Federal Board of Customs (FBC) taking into account the possibilities.
According to the details, manpower of 30,000 personnel will be required for this division. The FBR will be responsible for the collection of Income Tax and Federal Excise Duty (FED) under the Inland Revenue Services while the FBC will look after customs related matters.
The team of International Monetary Fund (IMF) that visited Pakistan recently suggested setting up a National Tax Authority in the medium term, however this was not possible as it was difficult to convince the provinces to collect taxes under one umbrella under a unified system.
In a high-level meeting presided over by Caretaker Finance Minister Dr. Shamshad Akhtar, various possibilities were examined in this regard. For restructuring, amendments will have to be made in the laws which cannot be done under the Caretaker Government.