FBR Revamp: Government Establishes Five Working Groups

In a significant move aimed at reforming the Federal Board of Revenue (FBR), the government has established five working groups. This initiative is designed to accelerate the finalisation of various reform initiatives within the FBR, ensuring that these changes are implemented in a timely manner. The formation of these groups comes after the government granted approval-in-principle for the FBR’s Transformation Plan, which seeks to address the structural challenges that have hindered revenue growth in Pakistan.

Over the past 40 days, a dedicated team of more than 50 tax officers and experts, led by FBR Chairman Rashid Mahmood Langrial, has been diligently working on this transformation plan. Their efforts have focused on identifying and overcoming the obstacles that have prevented the FBR from achieving its revenue targets. One of the key objectives of the plan is to reduce the amount of cash currency in circulation, bringing it in line with levels seen in other countries in the region.

Recent reports from the FBR have highlighted a staggering tax gap of Rs7 trillion under federal taxes, underscoring the urgent need for reform. In response to this pressing issue, the prime minister has tasked the newly formed working groups with the responsibility of crystallising various proposals. These groups will engage in consultations with relevant stakeholders and are expected to present a comprehensive implementation roadmap that includes clear timelines for the proposed work streams of the FBR’s transformation plan.

The terms of reference for these working groups are quite specific. They are required to review and finalise operational plans for all proposed interventions outlined in the FBR transformation plan. Additionally, they will be responsible for suggesting improvements wherever necessary, ensuring that the reform process is both effective and efficient.

This initiative represents a crucial step towards enhancing the efficiency of the FBR and improving the overall tax collection system in Pakistan. By addressing the existing challenges and implementing strategic reforms, the government aims to create a more robust revenue framework that can support the country’s economic growth. As these working groups begin their important task, the hope is that their efforts will lead to a more transparent and effective tax system, ultimately benefiting the citizens of Pakistan.