Caretaker Finance Minister Dr. Shamshad Akhtar has announced plans for a comprehensive reorganization of the Federal Board of Revenue (FBR), aiming to bolster the Inland Revenue system and expand the tax net to include sectors currently outside its purview. Dr. Akhtar expressed confidence that these reforms would lead to a notable increase in tax revenues.
The restructuring initiative, endorsed by the federal cabinet under the stewardship of Caretaker Prime Minister Anwar Haq Kakar, will see the implementation of digital systems within the FBR. This technological upgrade is expected to curb tax evasion and encourage more individuals and entities to register as tax filers.
Highlighting the significance of FBR reforms, Dr. Akhtar emphasized their role in documenting the economic landscape and addressing fiscal challenges. By enhancing tax revenues and reducing external debt through the restructuring of FBR, the caretaker government aims to lay a foundation for sustainable economic growth.
Earlier, the Commission has intervened regarding the caretaker government's initiatives, asserting that major policy decisions such as the restructuring of FBR should be deferred to the incoming elected government. In a letter addressed to the Secretary to the Prime Minister, the Commission underscored its constitutional mandate to oversee actions exceeding the caretaker government's prescribed responsibilities.
Citing Section 230 of the Election Act, the electoral watchdog delineated the limits of the caretaker government's authority, suggesting that significant policy initiatives, including FBR reforms, should await the next elected administration. The letter reiterated the Commission's duty to monitor the caretaker government's actions, underscoring the need for adherence to constitutional protocols.
The ECP’s intervention underscores the delicate balance between caretaker governance and constitutional oversight, highlighting the complexities inherent in transitional administrations. As stakeholders await further developments, the fate of FBR restructuring remains subject to constitutional scrutiny and political dynamics.