ISLAMABAD: The government has clipped the Federal Board of Revenue of its key powers and made it limited to collection of taxes only.
The federal cabinet approved the establishment of a tax policy office in the ministry of finance for which a notification has also been issued. Under the notification, tax policy formulations and tax collections have been separated.
According to the notification, the tax policy office will directly report to the minister for finance and revenue. It will also help the government in its policy reforms.
According to media reports, the decision to clip the FBR of its key powers was taken as it was one of the major demands of the International Monetary Fund.
