What is Federal Board of Revenue?
Federal Board of Revenue (FBR), formerly known as Central Board of Revenue (CBR) was formed on April 1, 1924, with the enactment Central Board of Revenue Act of 1924. The Federal Board of Revenue (FBR) is a special government association of Pakistan to investigate money laundering and tax evasion crimes. The FBR works with all individuals and organizations to strengthen tax assessment in the nation.
The FBR perform special duties for FBR headquarters through tax inspectors who monitor tax evaders. The FBR also collects tax evasion intelligence and manages tax laws for the government of Pakistan and acts as Pakistan’s central agency of collection of revenue.
Mission of FBR
Federal Board of Revenue’s mission is to increase the capacity of the tax system through modern techniques by providing taxpayer guidelines, support, and the ability to pay taxes through a motivated, devoted, satisfied, and professional workforce.
Also Read: What is Value Added Tax
Functions of FBR
The FBR is a semi-autonomous federal agency of Pakistan responsible for enforcing financial laws and collecting taxes for the Government of Pakistan. Provides approval for appeal/reference before High Courts and CPL / review before the Supreme Court and approval for litigation in courts. The responsibilities of FBR are:
- Formulating and managing fiscal policies.
- Federal duties and collection of revenues, taxes and other levies,
- Intentional court work in deciding tax cases and appeals
FBR basically works through its main collection branches across the country involving Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs). To perform functions accurately on the basis of different duties FBR consist of following wings:
|06||Facilitate and Taxpayer Education (Fate)|
|07||Strategic Planning Reforms &Statistics(SPR&S)|
|08||Human Resource Management (HRM)|
|11||Legal and Accounting – Customs|
FBR Wing has responsibilities and functions according to their specifications. Rather than other wings there are two major wings of FBR with major function
A) The Inland Revenue
The Inland Revenue Service (formerly known as the Income Tax Department) levies domestic taxes, including Income Tax, Sales tax and Federal excise duty, and is a central component of the FBR.
B) The Custom
The Pakistan Customs Service directs import obligations and various taxes levied at the import stage, also manages international trade and manages the limits and restrictions imposed by government legislation.
For the purpose of tax collection and prosecution of tax evaders, the powers and functions of the FBR include yet are not restricted to:
- Investigating and auditing tax matters,
warrants, with attachments.
- Also, the public auction of movable and
immovable assets was non-compliant.