The Federal government has introduced an amendment bill in Parliament seeking to provide legal cover to allegedly irregular appointments and unapproved incentives granted within the Federal Board of Revenue (FBR).
Under the proposed legislation, all past actions, decisions and appointments made in the FBR would be granted legal validity. The move also includes an indemnity clause to protect appointments made since 2016 and to ensure that decisions taken under those appointments remain effective.
As an interim arrangement, the federal cabinet has temporarily delegated its authority regarding appointments to the Secretary Revenue Division (BS-22), enabling appointments of FBR members in grades 21 and 22 until parliamentary approval of the amendments.
However, legal experts argue that the step runs contrary to the spirit of the Supreme Court’s verdict in the Mustafa Impex case, which held that the term “federal government” refers to the federal cabinet and that executive powers must be exercised collectively.
Through amendments to the FBR Act, 2007, the government has also proposed permanently withdrawing the authority to appoint FBR members from the federal cabinet and vesting it in the Secretary Revenue Division.
The bill further seeks to validate all previous actions, orders, agreements, notifications, incentives and rewards granted by the FBR chairman, members or the board itself. This includes benefits allegedly extended without the approval of the Policy Board.
Another key proposal in the draft legislation is the abolition of the FBR Policy Board, which was headed by the finance minister and included representatives from the cabinet and Parliament.
Under the proposed changes, policy-making powers would be shifted to a Tax Policy Office operating under bureaucratic control.
The bill was tabled in the Senate last week and has been referred to the Senate Standing Committee on Finance for detailed consideration. The committee is expected to deliberate on the matter this week before reaching a decision.
