ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, Tuesday, approved five key areas as part of the Federal Board of Revenue (FBR) transformation plan including enhancing board’s operational expertise/organisational capacities and empowering provincial authorities to take enforcement actions and anti-smuggling measures.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb chaired a meeting of the ECC of the Cabinet, here on Tuesday.
The ECC also took up five separate summaries submitted by the FBR as part of the FBR Transformation Plan earlier approved by the prime minister.
FBR begins implementation of transformation plan
The subject matters covered under the summaries included the following five key areas:
(1) Enhancing FBR’s Operational Expertise and Organizational Capacities,
(2) Performance Management Regime for FBR Officers,
(3) Capacity Building Program for FBR Officers,
(4)Anti-Smuggling Measures under FBR Transformation Plan, and
(5)Mobility and Transit Accommodation Arrange-ments for FBR Officers.
The FBR has moved these summaries for enforcement including two summaries for taking action against sales of illicit cigarettes and smuggled products under the FBR’s transformation plan.
The FBR will generate Rs200 billion to Rs250 billion through these enforcement efforts. By January 2025, the implementation of new enforcement measures would be done under the FBR’s transformation plan.
The FBR will empower provincial authorities to take enforcement action against illicit sales of cigarettes and other smuggled commodities through amendments in the FBR rules.
Under the FBR’s transformation plan, provincial departments would be empowered to take action against sales of illicit cigarettes. The FBR has limited workforce of 100 officers for conducting enforcement activities and need coordinated efforts of provinces.
The ECC had a detailed discussion on all five proposals submitted by the FBR and accorded them a principled approval with the proviso that a third-party impact evaluation of the processes and KPIs proposed under the proposals would be conducted before the next financial budget, while a similar impact evaluation of the outcomes in line with the KPIs to be drawn up under the proposals, would be carried out at the end of calendar year 2025 to see the merit of the entire exercise and its impact on the overall goal of enhanced revenue generation and resource mobilization.
The ECC also decided that the Revenue Division and Finance Division would work out the mechanics, including allocation and release of budgets, under the five proposals, through joint consultation.
The ECC considered and approved a summary submitted by the Ministry of Communications (Postal Services Wing) for a Technical Supplementary Grant (TSG) amounting to Rs16.995 billion for clearing of verified pending liabilities of companies/agency partners of Pakistan Post Office Department.
The ECC also considered and approved a summary submitted by the Election Commission of Pakistan for a TSG of Rs1.317 billion in connection with Local Government (bye-elections) in Sindh, Khyber Pakhtun-khwa and Balochistan and Local Government elections in Islamabad (ICT) and Punjab province during fiscal year 2024-25.
The meeting was attended by Rana Tanveer Hussain, Minister for Industries and Production; Sardar Awais Ahmad Khan Leghari, Minister for Power; Jam Kamal Khan, Minister for Commerce; Ali Pervaiz Malik, Minister of State for Finance and Revenue; the governor State Bank of Pakistan; the chairman FBR, federal secretaries, and senior officers from concerned ministries and departments.
Copyright Business Recorder, 2024
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