Federal Board of Revenue and Its Functions

Federal Board of
Revenue History,
Functions
Federal Board of Revenue (Pakistan)

The Federal Board of Revenue (more commonly known by its
initials as FBR) is the semi-autonomous, supreme federal agency
of Pakistan that is responsible for auditing, enforcing and
collecting revenue for the government of Pakistan.FBR has the
responsibility for (i) for'mulation and administration of fiscal
policies, (ii) levy and collection of federal taxes and (iii) quasijudicial function of hearing of appeals. FBR is estimated to be the
largest federal bureaucracy in Pakistan. As the agency conducts
audit of taxpayers regularly, it's regarded as the guardian of
national treasury in Pakistan. FBR primarily operates through its
main collection arms, its field formations, the Regional Tax Offices
(RTOs) and Large Taxpayer Units (LTUs) across the country. FBR
has two major wings: the Inland Revenue Wing (Income Tax
Department) which brings in about 54% of FBR's total collection
and Customs Wing now called as Pakistan Customs Service.
Mostly in the media, the acronym 'FBR' is also often mentioned
when speaking in relation to Inland Revenue Officers (previously
Income Tax Department officials) in Pakistan. Income Tax Officers
(now Inland Revenue Officers) are considered some of the very
powerful officers in the country. For the purpose of collection of
revenue and pursuing tax evaders, FBR's powers & functions also
include but are not limited to: carrying out inquiries and
audits/investigations into the tax affairs, commanding arrests,
attachment as well as public auction of movable and immovable
assets of a non-compliant. Tariq Bajwa is the current chairman of
FBR; he was appointed by the Prime Minister
Contents
1 History and description
2 Notable former chairmen

History and description[
The Central Board of Revenue (CBR) was created on April 1,
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
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continued up to 31 August 1960 when on the recommendations of

the Administrative Re-organization Committee, CBR 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 CBR was created
with the status of ex officio Additional Secretary and Secretary
Finance was relieved of his duties as ex officioChairman of the
CBR.
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 CBR 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 CBR
reverted to the pre-1991 position. The Revenue Division
continued to exist since from December 1, 1998; however, owing
to the recent controversy which arose when the federal
government appointed the new CBR Chairman of the seventh
common, bypassing several senior-most officials in the Customs &
Federal Excise department, Prime Minister of Pakistan gave an
additional charge of Revenue Division, Government of Pakistan to
the then Secretary Finance and now the chairman of the agency
Salman
Siddiq,
Government
of
Pakistan,
thereby
violating Federal Board of Revenue Act, 2007 as the senior
officials in the then Customs & Excise Group now Pakistan
Customs Service (PCS) refused reporting to a junior officer.
By the enactment of FBR Act 2007 in July 2007 the Central
Board of Revenue has now become Federal Board of Revenue. The
status of FBR as Revenue Division has again been restored.
Notable former chairmen
First Ex Officio Chairman of FBR was Sir Victor Turner from August
14, 1947 to February 1, 1950. Ghulam Ishaq Khan also who later
became the president of Pakistan served as the board chairman
from May 31, 1966 to September 8, 1970. The then Finance
Secretary A G N Kazi also served as Chairman CBR from 1970-71
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until his Additional Secretary M Zulfiqar took over as the first fulltime Chairman of the Board.
Function of FBR / Revenue Division
In the existing setup, the Chairman, FBR, being the executive head of
the Board as well as Secretary of the Revenue Division has the
responsibility for
(i) Formulation and administration of fiscal policies,
(ii) Levy and collection of federal taxes and
(iii) Quasi-judicial function of hearing of appeals.
His responsibilities also involve interaction with the offices of the
President, the Prime Minister, all economic Ministries as well as trade
and industry.
Detailed Chart of functions

To identify the Withholding Agents;
To facilitate issuance of NTN/FTN to unregistered
Withholding Agents in respective Regional Tax Office
through Pakistan Revenue Automation Limited;
To assist FBR in developing an accounting policy for
appropriation of the deduction to the Regional Tax Offices /
Large Taxpayers Unit having jurisdiction over particular
taxpayer(s);
To review and recommend suitable (automated) processes
and filing structure of withholding statements that is
compatible with income tax environment;
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To suggest to Federal Board of Revenue modification /

amendments. Required in the Withholding Tax Regime
under the Income Tax Ordinance, 2001, to make them
responsive and in accordance with the universally
acknowledged principles of direct taxation and best
practices.
To monitor the certificates of exemption from withholding
taxes, issued by concerned tax authorities, for their proper
utilization by all concerned.
To adopt ways and means to educate and facilitate the
prescribed persons (Withholding agents)and other
stakeholders in meeting their withholding tax related
obligations;
To collate information on withholding taxes withheld /
collected and deposited for various purposes, by
identifying non-NTN holders for broadening of tax base;
To perform any other work incidental or necessary to
achieve the objectives of the organization and discharge of
above functions;
To perform such other functions as may be assigned by the
Federal Board of Revenue;
To check, supervise, ascertain, monitor, reconcile and
properly enforce, in whole of Pakistan, the Withholding
regime and other relevant provisions of the Income Tax
Ordinance, 2001 and Sales Tax of 1990.
To adopt ways and means to monitor deduction, collection
and payment of tax collected / withheld to ensure their
correctness as per law and timely deposit in the
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Government treasury / State Bank of Pakistan / National

Bank of Pakistan;
To control possible leakages of Withholding Taxes;
14. To investigate cases of non-deduction / short-deduction
of Withholding Taxes;
To enforce the prescribed statements in respect of taxes
withheld and take appropriate action under the law in the
cases of defaulters;
To maintain proper record of Withholding Taxes and
prescribed persons;
To verify and cross match the monthly statements of
Withholding Taxes with tax deposits / collection, returns /
statements / book of accounts / declarations and other
information on taxpayers.
To get the orders passed under relevant provisions of the
Income Tax Ordinance, 2001, imposition of additional tax
and penalty and to ensure the recovery of tax not
deducted / collected by the withholding agents.
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Federal Board of

Federal Board of Revenue (Pakistan)

1 History and description

2 Notable former chairmen

continued up to 31 August 1960 when on the recommendations of

Detailed Chart of functions

To suggest to Federal Board of Revenue modification /

Government treasury / State Bank of Pakistan / National

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