According to reports, the caretaker government has accelerated the implementation of its plans to reorganize the Federal Board of Revenue in response to mounting resistance from both major political parties and the FBR itself. According to media reports, Dr. Shamshad Akhtar, the interim finance minister, plans to use a presidential ordinance to carry out the FBR reforms program by the end of this month, which is less than ten days before the elections. She thinks that in a few years, the reforms will increase tax revenue collection from the current 8.5 percent to 15 percent. The plan was approved earlier this month by the military-backed Special Investment Facilitation Council. The FBR bureaucracy, for its part, is against it because it fears losing its limitless privileges and having less discretionary power taken away. The politicians oppose it because they believe the temporary government lacks the authority to implement policies that could have far-reaching and long-term effects. They therefore wish to defer the decision regarding FBR reorganization to the upcoming elected administration. Regarding the constitutional boundaries of the interim set-up’s mandate, opinions cannot differ; however, FBR officials’ opposition appears to be driven by self-interest.If reports are accurate that the establishment intervened to resolve disagreements between the minister and senior revenue officials, then enacting an ordinance to carry out such important reforms would be a mistake. In order to make taxation equitable and fair while increasing collection, it is imperative and crucial to reorganize the Board, separate policy from tax collection, introduce technology, and limit the discretionary powers of FBR officials. However, it is best to delegate this task to the upcoming elected legislature. If the guardians proceed, the reforms would become unjustified, and the new administration might be forced to undo them before the plan is even put into action. Leaders of the PPP and PML-N have expressed concerns about the plan, and their concerns are valid. Should Dr. Akhtar desire a reorganization of the Board, she should devote more time to developing the reforms’ blueprint and delegate the task of drafting and executing legislation to the next administration. Advancing a policy that becomes entangled in controversy is never simple.
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