Federal Board of Revenue (Pakistan)
Encyclopedia
The Federal Board of Revenue (more commonly known by its initials as FBR) is the semi-autonomous, supreme federal agency of Pakistan
that is responsible for auditing, enforcing and collecting revenue for the government of Pakistan
. FBR has the responsibility for
(i) formulation and administration of fiscal policies,
(ii) levy and collection of federal taxes and
(iii) quasi-judicial function of hearing of appeals.
FBR is estimated to be the largest federal bureaucracy in Pakistan. As the agency conducts audit of taxpayers regularly, it's regarded as the guardian of national treasury in Pakistan. FBR primarily operates through its main collection arms, its field formations, the Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country. FBR has two major wings: the Inland Revenue Wing which brings in over 90% of FBR's total collection and Customs Wing. Mostly in the media, the acronym 'FBR' is also often mentioned when speaking in relation to Inland Revenue Officers (previously Income Tax Officers) in Pakistan. For the purpose of collection of revenue and pursuing tax cheaters, FBR's powers & functions also include but are not limited to: carrying out inquiries and investigative audits into the tax affairs, commanding arrests, attachment as well as public auction
of movable and immovable assets of a non-compliant.
Salman Siddiqui is the current chairman of the agency and under his capacity as Chairman FBR, he is authorized Office of the Secretary, Revenue Division, Government of Pakistan.
In order to remove impediments in the exercise of administrative powers of a Secretary
to the Government
and effective formulation and implementation of fiscal policy measures, the status of FBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and FBR reverted back to the pre-1991 position. The Revenue Division continued to exist since from December 1, 1998; however, owing to the recent controversy which arose when the federal government appointed the new FBR Chairman of the seventh common, bypassing several senior-most officials in the Customs & Federal Excise department, Prime Minister of Pakistan gave an additional charge of Revenue Division, Government of Pakistan to the then Secretary Finance and now the chairman of the agency Salman Siddiq, Government of Pakistan, thereby violating Federal Board of Revenue Act, 2007 as the senior officials in the then Customs & Excise Group now Pakistan Customs Service (PCS) refused reporting to a junior officer.
By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now become Federal Board of Revenue.
The status of FBR as Revenue Division has again been restored.
also who later became the president of Pakistan served as the board chairman from May 31, 1966 to September 8, 1970. The then Finance Secretary A G N Kazi
also served as Chairman CBR from 1970-71 until his Additional Secretary M Zulfiqar took over as as the first full time Chairman of the Board.
Since the mid-1990s, Sales Tax has grown dramatically in significance to the exchequer while Excise collection has stagnated.
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
that is responsible for auditing, enforcing and collecting revenue for the government of Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
. FBR has the responsibility for
(i) formulation and administration of fiscal policies,
(ii) levy and collection of federal taxes and
(iii) quasi-judicial function of hearing of appeals.
FBR is estimated to be the largest federal bureaucracy in Pakistan. As the agency conducts audit of taxpayers regularly, it's regarded as the guardian of national treasury in Pakistan. FBR primarily operates through its main collection arms, its field formations, the Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country. FBR has two major wings: the Inland Revenue Wing which brings in over 90% of FBR's total collection and Customs Wing. Mostly in the media, the acronym 'FBR' is also often mentioned when speaking in relation to Inland Revenue Officers (previously Income Tax Officers) in Pakistan. For the purpose of collection of revenue and pursuing tax cheaters, FBR's powers & functions also include but are not limited to: carrying out inquiries and investigative audits into the tax affairs, commanding arrests, attachment as well as public auction
Public auction
A public auction is an auction held on behalf of a government in which the property to be auctioned is either property owned by the government, or property which is sold under the authority of a court of law or a government agency with similar authority....
of movable and immovable assets of a non-compliant.
Salman Siddiqui is the current chairman of the agency and under his capacity as Chairman FBR, he is authorized Office of the Secretary, Revenue Division, Government of Pakistan.
History and description
The Federal Board of Revenue (FBR) was created on April 1, 1924 through enactment of the Federal Board of Revenue Act, 1924. Throughout the history and till now FBR is deemed as the supreme government department of Pakistan because it has powerful Income Tax Officers operating all across the country. In 1944, a full-fledged Revenue Division was created under the Ministry of Finance. After independence, this arrangement continued up to 31 August 1960 when on the recommendations of the Administrative Re-organization Committee, FBR was made an attached department of the Ministry of Finance. In 1974, further changes were made to streamline the organization and its functions. Consequently, the post of Chairman FBR was created with the status of ex-officio Additional Secretary and Secretary Finance was relieved of his duties as ex-officio Chairman of the FBR.In order to remove impediments in the exercise of administrative powers of a Secretary
Secretary
A secretary, or administrative assistant, is a person whose work consists of supporting management, including executives, using a variety of project management, communication & organizational skills. These functions may be entirely carried out to assist one other employee or may be for the benefit...
to the Government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
and effective formulation and implementation of fiscal policy measures, the status of FBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and FBR reverted back to the pre-1991 position. The Revenue Division continued to exist since from December 1, 1998; however, owing to the recent controversy which arose when the federal government appointed the new FBR Chairman of the seventh common, bypassing several senior-most officials in the Customs & Federal Excise department, Prime Minister of Pakistan gave an additional charge of Revenue Division, Government of Pakistan to the then Secretary Finance and now the chairman of the agency Salman Siddiq, Government of Pakistan, thereby violating Federal Board of Revenue Act, 2007 as the senior officials in the then Customs & Excise Group now Pakistan Customs Service (PCS) refused reporting to a junior officer.
By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now become Federal Board of Revenue.
The status of FBR as Revenue Division has again been restored.
Notable former chairmen
First Ex-Officio Chairman of FBR was Sir Victor Turner from August 14, 1947 to February 1, 1950. Ghulam Ishaq KhanGhulam Ishaq Khan
Ghulam Ishaq Khan , abbreviated as GIK, was the seventh President of Pakistan from August 17, 1988 until July 18, 1993 and a career statesman from the start to the end of cold war...
also who later became the president of Pakistan served as the board chairman from May 31, 1966 to September 8, 1970. The then Finance Secretary A G N Kazi
A G N Kazi
Aftab Ghulam Nabi Kazi SPk, SK, was a Pakistani statesman during the Cold war and during the post cold war. Kazi was born in Sindh, Bombay Presidency in 1919 to an educationist family of academic class. Kazi started his career in Indian Civil Service in 1944 and served as the Deputy Commissioner...
also served as Chairman CBR from 1970-71 until his Additional Secretary M Zulfiqar took over as as the first full time Chairman of the Board.
Tax collection trend
This is a chart of trend of taxes collected by the Central Board of Revenue of Pakistan with figures in millions of Pakistani Rupees.http://www.sbp.org.pk/ecodata/tax.pdf| Year | Total | Direct Taxes | Indirect Taxes |
|---|---|---|---|
| 1996 | 129,282,087 | 658,485,060 | 211,597,027 |
| 2000 | 982,392,277 | 251,124,585 | 124,5267,692 |
| 2005 | 429,282,087 | 129,282,087 | 611,597,027 |
Since the mid-1990s, Sales Tax has grown dramatically in significance to the exchequer while Excise collection has stagnated.