HAKAM SHAH ADVOCATE

INTRODUCTION TO FBR
(The Federal Board of Revenue)

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.

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.

FBR has the responsibility for (i) formulation and administration of fiscal policies, (ii) levy and collection of federal duties, taxes and other levies, and (iii) quasi-judicial function of deciding taxation cases and appeals. FBR primarily operates through its main collection arms comprising Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country. FBR has two major wings: the Inland Revenue & Customs. The Inland Revenue Service (formerly known as Income Tax Department) administers domestic taxation including Sales Tax, Income Tax and Federal Excise Duties and is the main component of FBR. The Pakistan Customs Service administers import duties and other taxes collected at import stage, as well regulates international trade with regard to prohibitions & restrictions imposed by the government. 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.

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.

FBR vision is to be a modern, progressive, effective, autonomous and credible organization for optimizing revenue by providing quality service and promoting compliance with tax and related laws.

FBR mission is to enhance the capability of the tax system to collect due taxes through application of modern techniques, providing taxpayer assistance and by creating a motivated, satisfied, dedicated and professional workforce.

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