The government has failed to notify the separation of tax policy and tax administration from the Federal Board of Revenue (FBR) even one month after its approval from the Cabinet. The Cabinet on November 29 approved separation of tax policy from revenue administration and constituted a committee to work out legal and technical modalities. Sources told Business Recorder that a meeting between the Ministry of Finance and FBR on the issue of tax policy was scheduled to be held last week but it was postponed. The Finance Ministry has not yet given any new date to the FBR for the meeting on separation of tax policy and the FBR.
Under the rule 35 of the Rules of Business issued by Cabinet Division, the primary functions of the Revenue Division are tax policy and tax administration. The powers of tax policy are needed to be taken away from the Revenue Division through changes in the Rules of Business. The words 'tax policy' are required to be omitted from the functions of the Revenue Division. So far, Cabinet's Division's Rules of Business have not been amended, the sources added.
The six nominated members of the Tax Policy Board (TPB) are required to be cleared from standing committees of finance of the National Assembly and Senate. Following ratification from the committees, the government will notify the names of the nominated members of the TPB. So far, National Assembly Standing Committee on Finance has not been constituted. Six nominated members of TPB are Adviser for Commerce, Industries & Textile Industries Abdul Razzak Dawood, information technology professional Syed Javed, NADRA Chairman Usman Yousaf Mobin, former FBR Chairman Abdullah Yousaf, economist Dr Ijaz Nabi and former FBR Chairman Salman Siddique, they added.