Govt weighs new tax collection agency as FBR faces further restructuring

Profit, citing The Express Tribune, reported that the government is weighing a new tax collection body or deeper FBR restructuring, with concern about results despite repeated reform efforts. Prime Minister Shehbaz Sharif has asked the tax authority to present detailed plans on staffing, restructuring and institutional reform by October 19, per a Prime Minister's Office notice issued on Thursday. Officials said a separate tax agency was floated at a top-level session last Saturday, after which FBR Chairman Rashid Langrial asked officers to prepare options.

The FBR confirmed it is drafting proposals but stressed that talks are preliminary and no decision on a new body has been taken. Its stated priority is strengthening current revenue administration via personnel, technology and process upgrades, and it dismissed claims that collection work would be handed to a private firm. One option under review keeps the FBR running beside a new agency, with staff who do not transfer staying put until retirement.

Moving FBR powers to a separate body would need legislative changes, such as revisions to the FBR Act 2007 plus various tax statutes. The current proposals follow earlier attempts since 2000, including the Central Board of Revenue's conversion into the FBR and a transformation drive, valued above Rs55 billion, that began in 2024. The tax-to-GDP ratio was 10.3% last fiscal year, with collections over Rs1.1 trillion below the original target.