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Pakistan Revenue Authority to replace FBR by Dec 31

M Jahangir Hayat

Lahore: The Federal Board of Revenue (FBR) will be replaced by the Pakistan Revenue Authority by  Dec 31, 2019, sources told Daily The Business on Friday.

The sources said that the of FBR workforce will be drastically reduced. A combined vigilance and integrity wing is being established to bring to the book to the money makers in both Customs and Inland Revenue Service (IRS) .

It is said that the top mostt feature of re-structured FBR (PRA) will be that the policy matters will be taken away from the FBR and given to the Ministry of Finance.

The sources added that the second most distinctive feature of the restructuring will be
the scheme that the top offices will be reduced in ranks.

The BS-21 officers currently governing two to three Collectorates and Directorates will be reduced to collectors and directors, the sources said, adding that the BS 20 officers  will be reduced to present post of additional collectors (ADCs).
The sources said that the corrupt officers will not be able  to get on to BS-20.

Another source confirmed that Pakistan Revenue Authority (PRA) under World Bank program will replace Federal Bureau of Revenue (FBR) into a single revenue collection body which will be responsible for collection of all tax liabilities.

A meeting observed that the current structure of FBR is highly bureaucratic, which does not commensurate with technology driven tax administration in vogue around the world.

Sources claimed the proposal has already been circulated among concerned ministries and departments for vetting, while the Prime Minister Imran Khan has advised concerned authorities to complete the process by June 2020.

The meeting noted that there is a need to establish legislatively empowered, tailored to task (lean organization) and technology driven Pakistan Revenue Authority.

The Revenue Division has formulated comprehensive proposal for establishment of Pakistan Revenue Authority (PRA) and centralised collection of GST by PRA under the ambit of World Bank’s’ Pakistan Raises Revenue Project.

The meeting observed that in the interim period, FBR Headquarters needs to be reorganized/rearticulated on functional lines segregating Inland Revenue and Customs Operations into North and South Zones.

Two BS-21 Deputy Chairmen of FBR are proposed to be appointed to effectively coordinate and supervise segregated functions of Inland Revenue and Customs.

Major administrative and functional restructuring of existing Regional Tax Offices (RTOs), Large Taxpayer Units (LTUs) and District Tax Facilitation Centres is also proposed to be undertaken.

It was also proposed the disparate provincial revenue authorities be consolidated into a single authority for each province under the overall coordination, facilitation, guidance and oversight by PRA.

The meeting proposed to address collection, jurisdiction and double taxation issues, GST including on Services) be adopted as PRA’s responsibility.

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  1. Sajjad Mahdi says

    Renaming would not make any difference. Change the entire staff. Rate of bribery has gone up since PTI govt came to power . Every 2/3 years they purposely put up audit objections to get bribe

  2. Shaheen Iqbal Soomro says

    The biggest culprits in this loot and plunder are the customs officials which incurr billions of losses in cahoots with business men by under invoicing and paying less customs duties and taking a share .They always don’t implement new technology and don’t let it function properly.

  3. […] Source (Pakistan Revenue Authority ) […]

  4. Muhammad Munir Bawany says

    Tpal Federal a d provincial taxes should be merged into single tax to be collected by Federal Gpvernment and than distributed to the city and than district government as per ratio of their collections from divisible pool for their admin and development expenses. Further Quota system must be obolish and all appointments must be given on marits.
    Tax system must be simplified.

  5. Maverik says

    The main issue of FBr especially on the IRS side that the officers have no effective administrative control over the staff(1-16) thereby creating huge administrative issues as well corruption and harrassment allegations. Instead of addressing this loophole, futile reforms are made. The lack of control is due to recruitments in the past on political grounds in the Income tax group. The same is not the case with Customs. Therefore, all the organizational problems emanate within IRS while the policy-maker is clueless what is actually needed to reform the premier revenue collection agency.

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