Government weighs new tax agency

Government weighs new tax agency

The government is considering setting up a new tax collection body or restructuring the Federal Board of Revenue (FBR) after repeated reform efforts failed to deliver satisfactory results.

The FBR will submit comprehensive proposals for human resource reforms, revamping and restructuring to Prime Minister Shehbaz Sharif on October 19, according to directives issued by the Prime Minister’s Office on Thursday.

Officials said the proposal to establish an entirely new organisation emerged during a high-level meeting last Saturday. Following the discussion, internal consultations began, and FBR Chairman Rashid Langrial directed officers to prepare a reform plan for the prime minister.

When asked about the possibility of creating a new agency, an FBR spokesperson said the reform process remained active, with numerous proposals under discussion. However, the spokesperson added that the department could not comment on individual proposals until the government formally approved them.

In a separate response, the FBR confirmed that the prime minister had instructed it to present a comprehensive plan covering human resource reforms and organisational restructuring. The department said work on the proposals was already under way.

The FBR said the government wanted to build a stronger, more efficient and taxpayer-friendly tax administration. It added that the prime minister was personally monitoring the reform process.

According to the department, reforms covering human resources, technology and operational procedures had already been introduced. The latest exercise aims to build on those measures, address remaining weaknesses and improve the FBR’s overall performance.

The government will consider the proposals as it weighs further changes to the country’s tax collection system.