Pakistan has fulfilled another condition of the International Monetary Fund (IMF) under its ongoing $7 billion Extended Fund Facility (EFF) by establishing a tax policy office at the Ministry of Finance.
In a notification, the ministry said that the federal cabinet had approved the establishment of a Tax Policy Office within its premises to build on the government’s economic reform agenda. The office, it said, would support in the analysis of tax policies and proposals through data modelling, revenue, and economic forecasting, as well as the country’s international tax treaties and obligations.
The Tax Policy Office shall report directly to the Minister for Finance and Revenue.
As approved by the cabinet, staffing of the office would be undertaken with the approval of the Establishment Division and Finance Division on terms and conditions prescribed by the government. It said the responsibilities and structure of the office might be amended as deemed necessary for its optimal functioning with the approval of the federal cabinet.
Earlier, under the Federal Board of Revenue transformation plan, the government had approved the separation of tax policy from operations to enable independent tax policy decisions.