In a significant shift aimed at meeting conditions set by the International Monetary Fund (IMF), the federal government has removed the Federal Board of Revenue (FBR) from its role in tax policy-making. A notification has been issued to establish a new Tax Policy Office within the Ministry of Finance, which will now independently handle all tax policy formulation.

The newly created office will report directly to the Federal Minister of Finance and Revenue, focusing on developing a government-centered reform agenda. It will utilize data modeling, revenue assessments, and economic forecasting to analyze tax policies and proposals, ensuring informed decision-making.

This restructuring aligns with the IMF’s assurance that tax policy-making and collection would operate independently to enhance transparency and efficiency. According to sources, the Tax Policy Office will be responsible for preparing reports on income tax, sales tax, and federal excise duty (FED) policies for the finance minister. Meanwhile, the FBR will concentrate solely on implementing tax measures aimed at boosting revenue.