Federal Board of Revenue (Pakistan)

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The Federal Board of Revenue (more commonly known by its initials as FBR) is the semi-autonomous, supreme federal agency of Pakistan that is responsible for auditing, enforcing and collecting revenue for the government of Pakistan.[1] FBR has the responsibility for (i) formulation and administration of fiscal policies, (ii) levy and collection of federal taxes and (iii) quasi-judicial function of hearing of appeals. FBR is estimated to be the largest federal bureaucracy in Pakistan. As the agency conducts audit of taxpayers regularly, it's regarded as the guardian of national treasury in Pakistan. FBR primarily operates through its main collection arms, its field formations, the Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country. FBR has two major wings: the Inland Revenue Wing (Income Tax Department) which brings in over 90% of FBR's total collection and Customs Wing now called as Pakistan Customs Service. Mostly in the media, the acronym 'FBR' is also often mentioned when speaking in relation to Inland Revenue Officers (previously Income Tax Department officials) in Pakistan. For the purpose of collection of revenue and pursuing tax evaders, FBR's powers & functions also include but are not limited to: carrying out inquiries and audits/investigations into the tax affairs, commanding arrests, attachment as well as public auction of movable and immovable assets of a non-compliant. Tariq Bajwa is the current chairman of FBR; he was appointed by the Prime Minister. [2] [3]

History and description[edit]

The Central Board of Revenue (CBR) was created on April 1, 1924 through enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged Revenue Division was created under the Ministry of Finance. After independence, this arrangement continued up to 31 August 1960 when on the recommendations of the Administrative Re-organization Committee, CBR was made an attached department of the Ministry of Finance. In 1974, further changes were made to streamline the organization and its functions. Consequently, the post of Chairman CBR was created with the status of ex officio Additional Secretary and Secretary Finance was relieved of his duties as ex officio Chairman of the CBR.
     In order to remove impediments in the exercise of administrative powers of a Secretary to the Government and effective formulation and implementation of fiscal policy measures, the status of CBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and CBR reverted to the pre-1991 position. The Revenue Division continued to exist since from December 1, 1998; however, owing to the recent controversy which arose when the federal government appointed the new CBR Chairman of the seventh common, bypassing several senior-most officials in the Customs & Federal Excise department, Prime Minister of Pakistan gave an additional charge of Revenue Division, Government of Pakistan to the then Secretary Finance and now the chairman of the agency Salman Siddiq, Government of Pakistan, thereby violating Federal Board of Revenue Act, 2007 as the senior officials in the then Customs & Excise Group now Pakistan Customs Service (PCS) refused reporting to a junior officer.

By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now become Federal Board of Revenue. The status of FBR as Revenue Division has again been restored.

Notable former chairmen[edit]

First Ex Officio Chairman of FBR was Sir Victor Turner from August 14, 1947 to February 1, 1950. Ghulam Ishaq Khan also who later became the president of Pakistan served as the board chairman from May 31, 1966 to September 8, 1970. The then Finance Secretary A G N Kazi also served as Chairman CBR from 1970-71 until his Additional Secretary M Zulfiqar took over as the first full-time Chairman of the Board.

Tax collection trend[edit]

This is a chart of trend of taxes collected by the Central Board of Revenue of Pakistan with figures in millions of Pakistani Rupees.[1]

Year Total Direct Taxes Indirect Taxes
1996 129,282,087 658,485,060 211,597,027
2000 982,392,277 251,124,585 124,5267,692
2005 429,282,087 129,282,087 611,597,027

Since the mid-1990s, Sales Tax has grown dramatically in significance to the exchequer while Excise collection has stagnated.

See also[edit]

References[edit]