Concerns mount within FBR about ‘reforms’

The proposed restructuring of the Federal Board of Revenue (FBR) has heightened uncertainty within the field formation due to escalating tensions among tax groups concerning the nature and extent of the reforms, Dawn has learned from knowledgeable sources. This uncertainty could potentially affect revenue collection, a concern that is particularly significant given the current political instability that has already strained the country’s economy. The FBR is struggling to recover its revenue collection, yet it remains on track to meet the target committed with the International Monetary Fund (IMF). On Nov 16, 2023, Caretaker Finance Minister Shamshad Akhtar announced in Karachi that the customs will be separated from the Inland Revenue Services (IRS). This decision came as a big surprise for both tax officials and taxpayers, as they were not previously aware of this significant change.