Name: Fatima Shams

Roll No. 201393

Subject: Pakistan Studies

Topic: Federal Board of Revenue (FBR)

Date of Submission: 16-12-2020

Department: Humanities, Education and Psychology

 Federal Board of Revenue

Introduction:
Central Board of Revenue was established on April 01, 1924, via the enactment of the Central Board of
Revenue Act, 1924. In the year 1944, a separate Revenue Division was launched under the Finance
Ministry. Since independence, the organization continued up to 31 st August 1960. Then after the formal
recommendations of the “Administrative Re-organization Committee,” the department of the FBR was
made an associate department of the Finance Ministry.

The FBR went through further changes to improve the functionality of the said department. The
significant change involved the creation of a new post of Chairman FBR along with the Ex-officio
Additional Secretary and Finance Secretary was relived.

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.

Vision:

FBR has a clear vision to become a modern, progressive, independent, and credible

institution for the improvement of revenue generation by offering quality services and

promoting compliance with Taxation and respective laws.

Mission:

The mission of the FBR is to develop the capabilities of the Tax system and tax collection
through the implementation of modern techniques, providing the exchequer assistance and
creating a motivated, satisfied, dedicated, and professional team.

Values:

 Integrity
 Professionalism
 Teamwork
 Courtesy
 Fairness
 Transparency
 Responsiveness
Key Performance Indicators (KPIs) of FBR:

KPI-1: Revenue Target Performance

KPI-2: Level of Automation
KPI-3: Taxpayer’s Facilitation
KPI-4: Integration of FBR with other revenue agencies & departments
KPI-5: Revenue Laws Simplification
KPI-6: Risk-Based Audit Conducted by FBR
KPI-7: Formulation of National Tax / Customs Policy
KPI-8: FBR Outreach & Human Resource Development
KPI-9: FBR Representation before various Legal forums
KPI-10: Implementation of Public Account Committee (PAC) directives

Structure:
Chairman FBR:

The present chairman of FBR is Nausheen Javed Amjad appointed on 4 July 2020. He is the executive
forerunner of the board.

i. He possesses the authority to formulate and enforce the fiscal policies of the country.
ii. Decide on taxes and duties.
iii. Act as a referent to judicial appeals to the board.

The chairman serves an essential job to operate in sync with the economic and trade ministers of the
country as well as keep up with the prime minister of the state.

FBR Wings:

1. Inland Revenue
2. Customs
3. Administration (Admin)
4. Taxpayers Audit
5. Legal
6. Facilitation and Taxpayer Education (FATE)
7. Strategic Planning Reforms & Statistics (SPR&S)
8. Human Resource Management (HRM)
9. Information Technology
10. Accounting
11. Legal & Accounting - Customs
Directorates:

 Directorate General of Transit Trade - Pakistan Customs

 Directorate of Broadening of Tax Base (Special Directorate)
 Directorate General of Intelligence & Investigation - Pakistan Customs
 Directorate General of Internal Audit - Pakistan Customs
 Directorate General of Input Output Coefficient Organization - Pakistan Customs
 Directorate General of Reform & Automation - Pakistan Customs
 Directorate of Post Clearance Audit - Pakistan Customs
 Directorate General of Valuation - Pakistan Customs
 Directorate General of Training & Research - Pakistan Customs
 Directorate General of Intelligence & Investigation - Inland Revenue
 Directorate General of Training and Research - Inland Revenue
 Directorate of Withholding Tax - Inland Revenue
 Directorate General of Internal Audit - Inland Revenue

Functions:

Federal Board of Revenue (FBR) is responsible for revenue generation for the Federal government
of Pakistan. It is the mainstay for revenue generation in the country and its performance is pivotal for the
government to meet its obligation towards its citizens. Primarily it is responsible to execute the fiscal
policy of the government by levying taxes and duties on imports, exports, incomes, and profits. FBR
collects Income Tax, Sales Tax, and Federal Excise Duty. The collection of these taxes and duties is
governed by the following salient laws and rules enacted by the Federal Government from time to time. It
has two major wings:

I. Irland Revenue is formally known as the income tax department. Domestic taxation
includes sales tax income tax.
II. Pakistan Custom services import duties and other taxes collected at import stage, as well as
regulate international trade to prohibit and restriction imposed by the government.

FBR also monitors the maintenance of the Central Data Bank at FBR HQ. Handle the complaints to extent
of working of field formation to the tax base. Practice financial investigations whenever required in
potential taxpayers.
Hierarchy: