FBR’s policymaking role assigned to new tax office

The government has withdrawn key power of tax policymaking from the Federal Board of Revenue (FBR), fulfilling one of the major conditions set by the International Monetary Fund (IMF).The FBR will continue to collect tax and will have no role in policymaking, which will now be supervised by Finance Minister Muhammad Aurangzeb.Accordingly, the government has established a Tax Policy Office, which will report to the Ministry of Finance and Revenue.The new office will analyze the government’s reform agenda and tax proposals.The government had assured the IMF of maintaining autonomy in tax policy and collection.Efforts will be made to minimize tax fraud and plug loopholes to improve revenue collection.The Pakistan government had given an undertaking to the IMF that it would establish a Tax Policy Office and bifurcate responsibilities.Finance Minister Aurangzeb had committed to set up TPO in the first quarter of fiscal year 2025 but it was delayed. The government finally set up the office just ahead of IMF