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FBR merges direct tax, sales tax and federal excise into one department

ISLAMABAD (January 16 2009): The Federal Board of Revenue has merged direct tax, sales tax and federal excise into one department, called 'Inland Revenue' which would be headed by a single Member.

Under the revamped organisational structure of the FBR, former Member Direct Taxes Irfan Nadeem has been appointed as FBR Member Inland Revenue with immediate effect.

The position of Member (Inland Revenue) will be responsible for field operations of Direct Taxes, Sales Taxes and Federal Excises. Former Member Sales Tax Abdul Wadood Khan, a retired (BS-22) official has been reemployed on contract basis as Advisor to the FBR Chairman.

As a result of integration of administrations of direct taxes, sales tax and federal excise, there would be now two line members ie Member (Inland Revenue) and Member Customs as compared to previous four members. The support members would continue to work under the new organisational structure like before.

The FBR has also introduced a new support function of Enforcement and Accounting, which would be headed by a separate member. The FBR has appointed former Member Information Management System (IMS) Muhammad Anees as Member Enforcement and Accounting. He would also hold additional charge of Member IMS.

This new support function of enforcement and accounting has been introduced in the functional design, which is to be administered by a separate Member. The function would cover areas of enforcement, certain revenue operations, refund payment and accounting functions.

The FBR has also re-designated post of Member Human Resource Management (HRM) as Member Inspection and Audit. Usman Khalid Mirza, Member Audit has been transferred as new Member Inspection and Audit. The new designation would cover areas relating to internal and external audits.

At the same time, the taxpayers' audit has also been entrusted to an independent Member separating it from the internal audit function. Abrar Ahmed Khan, Chief Sales Tax has been appointed as Member Audit, which would help in re-enforcement of sales tax and income tax audit in the field formations. Abrar would also hold additional charge of the post of Chief Sales Tax.

The FBR has announced that government is committed to enhance domestic resource mobilisation as part of its stabilisation and reform strategy to meet the targets of sustainable growth. A key element in this regard is the establishment of a fair and efficient tax administration.

The FBR has been undergoing a comprehensive Programme of Tax Administration Reforms. The Programme is aimed at restructuring of FBR on the pattern of leading modern tax administration. The Tax Reform Programme envisaged a functionally integrated tax administration of sales tax, federal excises and direct taxes.

The key element was to facilitate taxpayers by providing universal self-assessment across all taxes. It would not be possible to implement the system effectively without having a functionally designed tax administration. The FBR continued to operate in separate domains of Direct Taxes and Sales Tax/Federal Excises with partial design adjustments at Headquarters and field formations.

Accordingly, the tax administrations of direct tax, sales tax and federal excise have been integrated into a single position of 'Inland Revenue' headed by a single Member. He is responsible for all field operations at the Regional Tax Offices and Large Taxpayers Units across the country. This step is intended to facilitate taxpayers by creating a single window access and aligning all business processes to promote a tax compliant culture.

In addition, a new support function of enforcement & accounting has been introduced in the functional design, which is to be administered by a separate Member, the FBR added. The FBR has issued four notifications on Thursday under the powers available as per FBR Act 2007.

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