The Senate Standing Committee on Finance approved the proposed amendments to the Federal Board of Revenue (FBR) Act 2026 after a detailed discussion marked by sharp exchanges over administrative powers and tax reforms.
The meeting, chaired by Senator Saleem Mandviwalla, reviewed the Federal Board of Revenue (Amendment) Bill moved by Senator Rana Sanaullah.
During the session, the FBR chairman informed the committee that following the Supreme Court’s ruling in the Mustafa Impex case, certain executive powers previously exercised by the prime minister were vested in the federal cabinet, necessitating amendments to the FBR Act. He added that the Tax Policy Board had been shifted from FBR to the Ministry of Finance in line with the decision.
Senator Talha Mahmood opposed the proposed amendments, arguing that they would concentrate excessive authority in the hands of the FBR chairman. He questioned the professional background of the incumbent chairman, stating that the tax authority was a technical institution and should be led by someone from within the department.
He further alleged irregularities within the tax machinery, claiming that some officials’ assets did not correspond with their salaries. “Tax collection is declining, and taxpayers prefer paying more to avoid complications,” he said, stressing the need to make the tax system more taxpayer-friendly. He announced that he would oppose the bill.
The finance minister briefed the committee that the Tax Policy Board had formally been moved under the Ministry of Finance and that from this year onward all officers would be required to declare their assets. He invited lawmakers to present any complaints against tax officials for action.
Chairman Saleem Mandviwalla observed that the authority to appoint FBR members had been vested in the FBR chairman. Responding to concerns, the FBR chairman maintained that the arrangement had been in place since 2007 and was in accordance with the board’s governing law.
Senator Shahzaib Durrani described the matter as administrative in nature and suggested that the federal finance minister should not be drawn into it. Senator Zameer Ghumro said he was a member of the Tax Policy Board but its meeting had not been convened. Senator Bilal Azhar Kayani echoed similar concerns, stating that meetings were never held during his tenure as a member.
The FBR chairman also informed the committee that the department had more than 78 Grade-21 officers and transfers were a routine administrative practice, adding that such procedures had been followed historically.
Following deliberations, the committee approved the proposed FBR (Amendment) Bill 2026.