ECP stops caretaker PM Kakar from overhauling FBR

The Election Commission, in response to the federal cabinet’s decision, prohibited the caretaker prime minister from initiating the overhaul of the Federal Board of Revenue (FBR).

The Election Commission emphasized that it is constitutionally obligated to monitor the actions of the caretaker government beyond its designated responsibilities. A letter to the interim Prime Minister’s Secretary highlighted the specific jurisdiction outlined in the Constitution and the Election Act.

Previously, the coalition government, post the removal of ex-PM Imran Khan, amended the Election Act to empower the interim setup to make significant policy decisions on multilateral and bilateral projects. However, the Election Commission, citing Section 230 of the Election Act, argued that major policy decisions, such as restructuring the FBR, should be left for the next government.

Despite the cabinet’s approval earlier in the day for the restructuring and digitization of the FBR, the electoral watchdog urged the caretaker prime minister to avoid implementing large-scale reforms in the FBR. The approved reforms included the establishment of a Federal Tax Policy Board and the separation of Customs and Inland Revenue departments, both working under specific director generals for digitization and transparency.

The caretaker PM endorsed these decisions while emphasizing the need for a legislative draft and approval in the upcoming session of the newly elected parliament.

The cabinet also deferred amendments recommended by the Ministry of Water Resources regarding the IRSA Act 1992, directing the ministry to resubmit them after thorough debate.