The federal government has fulfilled yet another condition set by the International Monetary Fund (IMF), stripping the Federal Board of Revenue (FBR) of key powers.

According to sources, the FBR will now be restricted to tax collection, while policy formulation will fall under the jurisdiction of the finance ministry.

To implement this shift, the finance ministry has established a Tax Policy Office, separating tax policy formulation from collection.

The office will report directly to the minister for finance and revenue and will oversee the government’s reform agenda and tax proposals.

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The government had assured the IMF that tax policy and collection would remain independent.

Moving forward, policies related to income tax, sales tax, and federal excise duty (FED) will be under the direct supervision of the finance minister.

Additionally, new measures will be introduced to curb tax fraud and address loopholes.