Govt limits FBR to tax collection, strips policy role under IMF condition

Tax Policy Office activated within the Ministry of Finance as part of structural reforms

ISLAMABAD:

The federal government has implemented another condition set by the International Monetary Fund by curtailing the powers of the Federal Board of Revenue, which will now function solely as a tax collection agency rather than a policymaking body.

The government has activated the Tax Policy Office within the Ministry of Finance as part of the IMF’s structural reforms. With this move, the authority to formulate tax policies has been transferred from the FBR to the new office.

According to official sources, Dr Najeeb Ahmed Memon has been appointed as the head of the Tax Policy Office for a two-year term, while several other key appointments have also been finalised. Naeem Hasan has been named Director Business Taxation, Fida Muhammad as Director International Taxation, Munir Ahmed as Director Direct/Indirect Taxation, and Ijaz Hussain as Director Personal Taxation.

All officials will serve under a Special Professional Pay Scale (SPPS). Sources said, the Tax Policy Office will become fully operational next week, after finalising its rules and regulations.

According to the Finance Ministry, the new office will be responsible for framing policies related to income tax, sales tax, and federal excise duty, while preparations for tax policies for the 2027 fiscal year will begin next week.