Functions of Federal Board of

Revenue
 Function of Federal Board of Revenue

Topics:
Introduction
What is FBR
Mission and Vision
Strength of FBR
Organizational Chart
Functions of Federal Board of Revenue
List of chairman of FBR
Members of Federal Board of Revenue
Objectives of Reforms
Needs of Reforms
Tax Reform initiatives in chronological Order
Recommendation
Income Tax Authorities
Delegation of Powers
Guidance to Tax Authorities
Overview of Website
Conclusion
 INTRODUCTION OF FBR
The Central Board of Revenue (CBR) was created on April 01, 1924 through
enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged
Revenue Division was created under the Ministry of Finance. After independence,
this arrangement continued up to 31st 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 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 continues to exist since from December 01, 1998.
By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has
now become Federal Board of Revenue.
WHAT IS FBR?
The Federal Board of Revenue (more commonly known by its initials as FBR) is a
semiautonomous federal agency of Pakistan that is responsible for enforcing fiscal laws
and collecting revenue for the government of Pakistan.
 MISSION &VISION OF FBRP
Vision
To be a modern, progressive, effective and creditable organization for
optimizing revenue by providing quality service and promoting
compliance with tax.
Mission
Enhance the capability of the tax system to collect taxes through
application of modern techniques, providing tax prayer assistance
and by creating a motivated, dedicated and satisfied, professional
work force.
Value
Integrity -professionalism-Team work-courtesy-fairness-Transparency-
Responsiveness
 STRENGTH OF FBR

Collecting nearly 90% of tax revenue of the state

Contribution towards federal& provincial total
revenue(tax and non tax) is around 65%
Revenue collected is sufficient to meet 75% to 85% of
government expenditure needs
Generation of resource for smooth economic
management of federal as well as provincial and local
government
Keeping the economy vibrant
Monitors fiscal policy through tax incentive to encourage
flow of FDI
FUNCTION OF FEDERAL BOARD OF REVENUE
Grand exemption from tax to the newly established industrial under taking
&make rules for such exemption.
Make rules for appointment of valuers & other matters , related to other smooth
functions.
Make rules for the recovery of tax from a taxpayer who is in a defaulted.
Make rules for tax credit or certain investments.
Certify an institution as conducting research in Pakistan .
Approve schemes regarding employee training .
Make rules for valuation & taxation of unexplained income or assets.
Issue circular to tax payers & officers of the board.
Issue advance ruling on application of a non resident.
Approve a security for the purposes of taxation of profit debts.
Secretary General Revenue Division/chairman , FBR
Mr. M Abdullah Yusuf 14-06-2006 23-07-2008
 MEMBER (INLAND REVENUE - POLICY)

Mr. Rehmatullah Khan Wazir

Deal with all policy matters, rules, regulations, interpretation of relevant
laws and perform all allied functions, relating to Income Tax, Sales Tax,
Federal Excise Duty, Income Support Levy, Capital Value Tax, Wealth Tax
and Corporate Asset Tax; including:
Exemptions
Avoidance of Double Taxation Agreements
Formulate and present proposals relating to Income Tax, Sales Tax,
Federal Excise Duty, Income Support Levy and Capital Value Tax for
annual Finance Bill;
Liaise with international organizations/ agencies on matters relating to
Inland Revenue;
Supervise all inter-ministerial issues relating to Inland Revenue;
Coordinate in matters relating to Inter Provincial Coordination Committee;
Process, short list and nominate officers of IRS for IRS specific training;
Exercise powers and perform functions of the Board under the provisions
of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act
2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax
Rules 2006, as delegated by the Board:.
Perform any other duty or task assigned by the Chairman, FBR.
 MEMBER (INLAND REVENUE - OPERATIONS)
DR. MUHAMMAD IRSHAD
Deals with revenue targets and manage operations
relating to Inland Revenue;
Liaise with the Member Customs for WHT on
imports;
Exercise powers and perform functions of the Board
under the provisions of Sales Tax Act 1990, Income
Tax Ordinance 2001, Federal Excise Act 2005,
Income Tax Rules 2002, Federal Excise Rules 2005
and Sales Tax Rules 2006, as delegated by the
Board:.
Perform any other duty or task Monitor enforcement
and Withholding Tax activities relating to Inland
Revenue;
To Exercise powers and functions of the Board
under section 214B of the Income Tax Ordinance,
2001.
 MEMBER (CUSTOMS)
Mr. Nasir Masroor Ahmad
Deal with all policy matters, rules, regulations, interpretation of relevant
laws and perform all allied functions, relating to Customs, including:
Exemptions
Duty Drawbacks
Rebates
Changes/modifications in Pakistan Customs Tariff
Judicial/Legal Issues
Formulate and present proposals relating to Customs for annual Finance
Bill;
Liaise with international organizations/ agencies on matters relating to
Customs; Achieve revenue targets and manage operations relating to
Customs;
Process, short list and nominate officers of Customs for Customs specific
foreign training;
Supervise all inter-ministerial issues relating to Customs;
Exercise powers and perform functions of the Board under the provisions
of Customs Act 1969, Customs Rules 2001 and Customs Notifications as
delegated by the Board:
Perform any other duty or task assigned by the Chairman, FBR.
 MEMBER (TAXPAYERS AUDIT)

Ms. Raana Seerat

Plan and design audit procedures;
Evaluate tax audits for all domestic taxes;
Devise and implement Annual National Audit
Plan;
Prepare selection criteria for audit coverage of
higher risk areas;
Exercise powers and functions of the Board
under Sales Tax Act 1990, Income Tax
Ordinance 2001 and Federal Excise Act, 2005,
as delegated by the Board;
Perform any other duty of task assigned by the
Chairman, FBR.
 MEMBER (ADMINISTRATION)
Mr. Muhammad Majid Qureshi
Deals with manage administration of Federal Board of Revenue;
Recruitment of officers/officials of FBR;
Transfer/posting of officers (BS-17 and above) of Inland Revenue and
Customs in consultation with the concerned Line Members and with the
approval of the Chairman
Transfer/Posting of Commissioners (Appeal) and Collectors (Appeal) in
consultation with Member (Legal).
Short list and nominate officers of FBR for mandatory training such as
MCMC, SMC, NMC and NDU;
Deal with promotion/ disciplinary/ litigation cases of FBR employees;
Manage record of FBR employees and HRIS;
Manage sanctioned strength of FBR employees;
Development budget and its expenditure under PSDP;
Manage current budget of FBR;
Administer expenditure budget of field formations;
Process all matters relating to official / gratis passports and Exit Control List
(ECL);
Coordinate in matters relating to the National Assembly, Senate Standing
Committees on Revenue and Finance, Cabinet Decisions and other
Ministries / Divisions.
CONT..
Manage logistics, vehicles, library, buildings, internal/external security and procurements
pertaining to their repairs/maintenance at FBR (HQ);
Process all matters relating to purchase/condemnation of vehicles at FBR (HQ) and field
offices;
Process hiring, de-hiring and rent payment of office buildings at FBR (HQ) and field offices;
Process hiring, de-hiring and rent payment of residential accommodations for employees at
FBR (HQ);
Process re-imbursement of medical claims of employees at FBR (HQ) and field offices;
Perform/initiate welfare activities for FBR employees;
Exercise powers and perform functions of the Board under the provisions of Customs Act 1969,
Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005, as delegated by
the Board:
Perform any other duty or task assigned by the Chairman, FBR.
 MEMBER (LEGAL)
Mr. Shaukat Ali
Coordinate with Law Division and Attorney General of Pakistan;
Maintain and update list of pending cases before the Supreme Court and High
Courts through Appeal Management Processing System and Litigation
Management System;
Monitor performance of Task Forces constituted for the purpose of liquidation of
sub-judice cases before the Supreme Court and High Courts;
Monitor performance of CIR (A) and Collector (A) and rationalize their work load;
Circulate important judgments of courts to the field offices and place the same
on web;
Exercise powers and perform functions of the Board under the provisions of
Customs Act 1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and
Federal Excise Act 2005, as delegated by the Board:.
Perform any other duty or task assigned by the Chairman, FBR.
To Exercise powers and functions of the Board under section 214B of the
Income Tax Ordinance, 2001 in respect of Orders made by CIR (Appeals)
 MEMBER (STRATEGIC PLANNING, REFORMS &
STATISTICS)
Dr. Muhammad Iqbal
Formulate revenue targets and do strategic planning for their
achievements, in consultation with line members;
Provide analysis of data relating to collection of taxes i.e. Direct
Taxes, Indirect Taxes, Customs Duty etc. and fiscal updates on
revenue generating efforts;
Conduct studies, as suggested by other Wings, particularly
sectoral analysis on tax contributions;
Coordinate with other financial institutions;
Perform any other duty or task assigned by the Chairman, FBR
 MEMBER (HRM)
Mr. Rozi Khan Burki
Process, short list and nominate officers for local and
foreign training, other than mandatory training and IRS
specific and Customs specific training;
Deal with all matters relating to Policies & Procedures for
Performance-linked Bonus Schemes, Voluntary Severance
Scheme, Job Descriptions and Organizational Structure,
work force planning;
Conduct awareness campaigns regarding changes and
issues relating to human resource;
Perform any other duty or task assigned by the Chairman,
FBR.
 MEMBER IT (INFORMATION TECHNOLOGY)
Dr. Muhammad Iqbal
Prepare plan and strategy for FBR in the field of Information &
Communication Technology (ICT).
Forecast and budget procurement of Software / Hardware / Networks, in
coordination with PRAL;
Monitor and control software development and implementation by PRAL /
external vendors and grant mandatory prior approval for initiating new or
modifying / enhancing/ shelving existing software application;.
Liaise with other Wings of FBR for Business Need Analysis;
Oversee cleansing of existing data;
Supervise PRALs overall management, including administrative, financial
and technical activities
Serve as an essential interchange for all communications between PRAL
and FBR(HQ)/ its field offices;
Spearhead the process of developing the audit methodology to assure
audit quality;
Exercise powers and perform functions of the Board under the provisions
of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act
2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax
Rules 2006, as delegated by the Board:.
Perform any other duty or task assigned by the Chairman, FBR.
 MEMBER (ACCOUNTING)

Mrs. Seema Majid

Deal with all matters relating to PAC/DAC on Audit
Reports/Performance Audit reports/Special Studies Reports;
Deal with all matters relating to DAC on management/MFDAC
(Memorandum for Departmental Accounts Committee) reports
and Financial Attest of Financial Statements (Revenue
Components) for each financial year;
Coordinate with Auditor General of Pakistan and Public
Accounts Committee in matters relating to Audit and Vice
Versa;
Perform any other duty or task assigned by the Chairman,
FBR.
 OBJECTIVES OF REFORMS
Mobilize resources as per budgetary projection for improved economic management
Widen taxpayers base
Streamline tax and tariff tax rates
Improve voluntary compliance and strive to minimize adversarial relationship
between taxpayers and tax collectors through:
Simplification of tax law s and procedures
Taxpayer friendly environment
Making the system more transparent and efficient
Honest Tax Administration
 NEEDS FOR REFORMS
Stagnant Revenue
Narrow Tax base
Primitive and antiquated tax administration (cylindrical instead of functions)
Complexity of tax laws and arbitrariness in their applications
Relationships between tax payers and tax collectors largely adversarial
TAX REFORM INITIATIVES IN CHRONOLOGICAL
ORDER
o May 2001 : Syed Shahid Hussains committee Report
o August 2001: IMF Mission Report
o Nov 2001: The strategy Document on Tax Reform
o Nov 2001: Presentation to the president of Pakistan
o Dec 2001: Approval of Strategy Document
o Feb 2002: Establishment of supervisory council
o Jul 2002: Establishment of Cabinet Committee for Federal Revenues(CCFR)
 RECOMMENDATION
Central Board of Revenue to have autonomy within the government structure
Supervisory council (now CCFR) to monitors and review CBR performance
Reorganized CBR and its fields offices on functional line
Merger of Income Tax ,Sales Tax ,Excise functions a step towards co-location and
integration of internal Tax
Separate handling of large taxpayers
Improve HRM strategy with respect to induction, promotion, training, compensation
of employees
Improve physical infrastructure and introduce one + window operations
Greater stress on taxpayers education, service and facilitation
 INCOME TAX AUTHORITIES
The Income Tax ordinance 2001 specifies the provision relating to the various
classes of tax authorities. I t also deals with the provisions regarding appointment a
functions of these authorities. According to these provisions the following different
classes of Income tax Authorities may be appointed:
Administrative authorities
Investigation and intelligence authorities
Training and research authorities
Internal audit authorities
Withholding taxes authorities and
Independent private agencies,.
 DELEGATION OF POWERS
Delegation of power means the assignment of the powers and functions of an authority
to another authority. As for the sake of its implementation, the whole Ordinance revolves
against the CIR. Thus there was a need to authorize delegation of his function and
powers to his subordinates (covered under the term Officer of Inland Revenue.The
functions and powers of the commissioner may be delegation to an Officer of Inland
Revenue in any of the following ways:
Delegation by Board
The Board may assign all or any of the power and functions of the commissioner in respect
of any person, class of person or area .
Delegation by Chief Commissioner
The chief commissioner with the approval of Board may assign all or any of the
Powers and functions of the commissioner in respect of any person class of persons or area.
CONT..
The CIR may delegate all or any of his power and functions under the income Tax
Ordinance to any Officer of Inland Revenue however , he cannot delegate his
power of delegation . It means the officer of inland revenue cannot further delegate
the powers assigned to him.
The CIR shall not delegate the powers of amendment of assessment to an
officer below the rank of Additio0nal Commissioner
The CIR may delegated his power to conduct the audit to a firm of Chartered
Accountant or cost and Management Accountants.
The order regarding delegation may cover all or any of the persons, classes of
persons
or areas within the jurisdiction of the commissioner
The CIR has power to cancel or modify the order to issued by him for delegation
of powers.
Where under a delegation order an officer of inland revenue has exercised the
powers and functions of CIR , it is shall be treated that such powers have been
exercised and the functions been performed by the CIR
.
 GUIDANCE TO TAX AUTHORITIES
During any proceeding under the Income Tax Ordinance the Commissioner
or any Officer of Inland Revenue may be assisted guided to instructed by
any authority to which he is subordinate or any other person authorized by
Board in this behalf.
Website overview
www.fbr.gov.pk