The Federal Board of Revenue (FBR) has announced the activation of the International Centre of Tax Excellence (ICTE) to enhance international tax cooperation, revenue forecasting, and tax policy design. This initiative aims to improve tax administration efficiency and maximize revenue collection by addressing gaps in the current system. The move reflects the FBR’s commitment to strengthening its capacity in international taxation and policy-making.
The ICTE, established under Section 230J of the Income Tax Ordinance 2001, is designed to operate as an independent institute contributing to tax policy development, interdisciplinary research, and capacity building for Inland Revenue officers. Its mandate includes conducting international seminars, workshops, and conferences on global taxation challenges while providing critical tax analysis and administrative improvements.
Leadership and Appointments
The FBR has issued a notification assigning additional responsibilities to key Inland Revenue Service officers to oversee ICTE operations temporarily. Officers Sumria Mahmood Qazi (IRS/BS-20), Fida Muhammad (IRS/BS-19), and Mehdi Hassan (IRS/BS-18) have been assigned roles within the ICTE for three months or until permanent appointments are made. These officers will play a pivotal role in establishing the institute’s initial framework and operational processes.
Structure and Governance
The ICTE will feature an Executive Committee tasked with overseeing its operations. This committee will include the FBR Chairman, Member (IR-Policy), Member (IR Operations), and two independent members appointed by the federal government. An executive director, who will also act as the chief executive of the institute, will manage daily administrative functions independently.
To ensure fair appointments, a nominating committee comprising the Minister-in-Charge, Secretary Revenue Division, and Secretary of Finance will recommend candidates for the positions of executive director and independent members. The appointments will adhere to strict criteria to maintain the institute’s credibility and efficiency.
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Functions of ICTE
The ICTE’s responsibilities include:
- Developing a model national tax policy and contributing to tax policy refinement.
- Conducting interdisciplinary research on tax administration and policy.
- Enhancing international tax cooperation and providing revenue forecasting.
- Organizing global seminars and workshops to address international taxation issues.
- Building the capacity of Inland Revenue officers and improving tax administration design.
- Addressing directives from the FBR or federal government to close the tax gap and enhance revenue collection.
Operational Framework
The ICTE will maintain a significant level of independence from the FBR to ensure unbiased input in tax policy development. At least 50% of the institute’s workforce will consist of experienced serving or retired Inland Revenue officers with expertise in tax policy and administration. Recruitment rules and employee terms will be prescribed by the federal government, ensuring a structured and transparent hiring process.
Data Management and Confidentiality
To support its research and analysis, the FBR will provide anonymized taxpayer data to the ICTE. The confidentiality of taxpayer information will be strictly upheld in compliance with Section 216 of the Income Tax Ordinance.
Monitoring and Progress
The FBR will establish a committee to monitor the institute’s establishment and appoint a project director to oversee its initial stages. The Executive Committee will assign annual requirements and guide the institute’s operations to align with the FBR’s strategic goals.
The ICTE represents a significant step forward for Pakistan’s tax administration, aligning with global best practices in policy development and international tax cooperation. As the institute becomes operational, it is expected to bolster the FBR’s capacity to address complex tax challenges, ultimately contributing to more robust revenue collection and an efficient tax system.
