ISLAMABAD: The government is likely to establish Oversight Boards having independent experts to supervise/monitor the proposed two Director Generals for the Customs Authority and DG Inland Revenue (IR) Authority.
Sources told that FBR is also planning to reconstitute the Federal Policy Board under the proposed restructuring of the Federal Board of Revenue (FBR) making it mandatory for the Revenue Division to report to the Policy Board.
The tax policy would be taken away from the FBR under the new reform plan. In this regard, a plan is underway to take away interference in the tax policy decisions by the FBR officials. The government is likely to include Federal Secretaries of different ministries in proposed Oversight Boards with the help of a few independent experts.
The Oversight Boards may have the mandate to monitor the proposed Customs Authority and DG Inland Revenue (IR) Authority.
If the Federal Policy Board is reconstituted, it would work as a policy department under the chairmanship of the Minister for Finance. The Secretary of the Revenue Division may report to the Policy Board.
Under the Policy Board, the proposed reform plan covers the constitution of a Tax Policy Wing that would include experts from Customs and Inland Revenue (IR) taxes including Income Tax, sales tax, and federal excise duty, as well as economists and researchers.
The Tax Policy Wing would look after setting up annual revenue collection targets per the emerging tax policy.
The government is also considering appointing two Director Generals for the Customs Authority and DG IR Authority. One of the proposals is to establish an Oversight Board headed by the Minister for Finance and respective DGs of Customs and IR authorities.
The Boards of these Tax Authorities will be headed by a Chairman who will be an independent member and include a Secretary of Finance, Commerce, and Revenue along with high-powered independent experts, sources added.
