National Assembly Passes Bill Abolishing FBR Policy Board

The National Assembly on Wednesday passed the Federal Board of Revenue (Amendment) Bill, 2026, formally paving the way for the abolition of the FBR Policy Board under the Federal Board of Revenue Act, 2007.

According to the legislative rationale accompanying the bill, the Federal Government has recently established a dedicated Tax Policy Office within the Ministry of Finance to independently undertake the analysis, formulation, and development of fiscal policy on behalf of the government. In view of this institutional development, the role previously assigned to the FBR Policy Board has been deemed redundant.

The amendment is part of a broader policy shift aimed at separating fiscal policy formulation from tax administration and revenue collection functions performed by the Federal Board of Revenue.

To give effect to this restructuring, the bill omits Section 6 of the Federal Board of Revenue Act, 2007, along with all ancillary and consequential references to the Policy Board contained in the law.

Prior to its omission, Section 6 provided for the establishment of the FBR Policy Board, which was tasked with issuing policy guidance on fiscal matters and assisting in the achievement of the strategic goals and revenue targets of the Federal Board of Revenue.

Under the revised framework, the Federal Government will continue to retain its authority to appoint the Chairman and Members of the Federal Board of Revenue.

However, the amendment also expands the role of the Secretary, Revenue Division, by authorising the Secretary to appoint Members of the FBR through transfer and posting of officers in BS-21 and above who are placed at the disposal of the Federal Board of Revenue.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb moved the bill before the National Assembly after the House approved supplementary grants. The Senate had already passed the proposed legislation on June 18, 2026.

The bill was subsequently approved by the National Assembly through a majority vote after the House rejected amendments proposed by Alia Kamran of Jamiat Ulema-e-Islam-Fazl (JUI-F).

The enactment of the amendment marks a structural change in Pakistan’s tax governance framework by consolidating tax policy development within the Ministry of Finance while further distinguishing that function from the operational and administrative mandate of the FBR.