The Federal Board of Revenue (FBR) has informed the World Bank (WB) that the FBR Act, 2007 would come into force from September 15, 2007. Sources told Business Recorder on Saturday that WB mid-term review mission has shown interest in various provisions of FBR Act, 2007.
The mission raised different questions pertaining to the implementation of the Act with the Member Legal and other senior tax officials. The FBR has conveyed to the WB that jurisdiction and powers of all FBR members needed to be defined for proper implementation of the FBR Act, 2007.
In the first stage, a notification would be issued for enforcement of the Act. Later, it would be gradually implemented in view of legal requirements of the board. Sources said that the WB mission also questioned about the extent of financial and operational autonomy of the FBR Act.
Tax authorities have informed the WB that the Act relating to establishment of the Federal Board of Revenue, 2007 has since been passed by the Parliament, whereas CBR Act, 1924 has not yet been repealed because this provision of the relevant section has not been made operative in view of Sub-section (3) of Section 1 of the FBR Act, 2007. Therefore, when the provisions of the FBR Act, 2007, are brought into operation then the board would be the Federal Board of Revenue and prior to that the Central Board of Revenue as it is exists."
The rules/regulations are accordingly being framed and finalised soon. Till legal formalities are completed, field formations may use the name of Central Board of Revenue in official correspondence.
Sources added that the FBR Act 2007 would empower the tax officials to formulate performance management rewards, incentives packages, golden handshake scheme and integrated management policy for the tax machinery.
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