INTRODUCTION TO FBR

The Central Board of Revenue (CBR) was created on April 01, 1924 through enactment
of the Central Board of Revenue Act, 1924. In 1944, a full-fledged Revenue Division
was created under the Ministry of Finance. After independence, this arrangement
continued up to 31st August 1960 when on the recommendations of the Administrative
Re-organization Committee, FBR was made an attached department of the Ministry of
Finance. In 1974, further changes were made to streamline the organization and its
functions. Consequently, the post of Chairman FBR was created with the status of ex-
officio Additional Secretary and Secretary Finance was relieved of his duties as ex-
officio Chairman of the FBR.
In order to remove impediments in the exercise of administrative powers of a Secretary
to the Government and effective formulation and implementation of fiscal policy
measures, the status of FBR as a Revenue Division was restored under the Ministry of
Finance on October 22, 1991. However, the Revenue Division was abolished in January
1995, and FBR reverted back to the pre-1991 position. The Revenue Division continues
to exist since from December 01, 1998.
By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now
become Federal Board of Revenue.
CHART OF FUNCTIONS
• To identify the Withholding Agents;
• To facilitate issuance of NTN/FTN to unregistered Withholding Agents in
respective Regional Tax Office through Pakistan Revenue Automation Limited;
• To assist FBR in developing an accounting policy for appropriation of the
deduction to the Regional Tax Offices / Large Taxpayers Unit having jurisdiction over
particular taxpayer(s);
• To review and recommend suitable (automated) processes and filing structure of
withholding statements that is compatible with income tax environment;
• To suggest to Federal Board of Revenue modification / amendments. Required in
the Withholding Tax Regime under the Income Tax Ordinance, 2001, to make them
responsive and in accordance with the universally acknowledged principles of direct
taxation and best practices.
• To monitor the certificates of exemption from withholding taxes, issued by
concerned tax authorities, for their proper utilization by all concerned.
• To adopt ways and means to educate and facilitate the prescribed persons
(Withholding agents)and other stakeholders in meeting their withholding tax related
obligations;
• To collate information on withholding taxes withheld / collected and deposited for
various purposes, by identifying non-NTN holders for broadening of tax base;
• To perform any other work incidental or necessary to achieve the objectives of
the organization and discharge of above functions;
• To perform such other functions as may be assigned by the Federal Board of
Revenue;
• To check, supervise, ascertain, monitor, reconcile and properly enforce, in whole
of Pakistan, the Withholding regime and other relevant provisions of the Income Tax
Ordinance, 2001 and Sales Tax of 1990.
• To adopt ways and means to monitor deduction, collection and payment of tax
collected / withheld to ensure their correctness as per law and timely deposit in the
Government treasury / State Bank of Pakistan / National Bank of Pakistan;
• To control possible leakages of Withholding Taxes;
14. To investigate cases of non-deduction / short-deduction of Withholding Taxes;
• To enforce the prescribed statements in respect of taxes withheld and take
appropriate action under the law in the cases of defaulters;
• To maintain proper record of Withholding Taxes and prescribed persons;
• To verify and cross match the monthly statements of Withholding Taxes with tax
deposits / collection, returns / statements / book of accounts / declarations and other
information on taxpayers.
• To get the orders passed under relevant provisions of the Income Tax
Ordinance, 2001, imposition of additional tax and penalty and to ensure the recovery of
tax not deducted / collected by the withholding agents.