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The Advisory Council may approve amended ordinances for income tax, customs, and Value-Added Tax (VAT) today (Thursday), paving the way for the bifurcation of revenue administration and policy.
Three separate ordinances for each wing of the National Board of Revenue (NBR) have already been approved by Finance Adviser Dr Salehuddin Ahmed.
NBR officials said the ordinances would be placed before the advisory council meeting on Thursday and are likely to receive approval. After that, they will be sent for the chief adviser's consent and later for the President's approval.
A senior NBR official said the major task for bifurcation was completing amendments to the ordinances, as existing legal provisions empower the 'NBR' under the current income tax, VAT, and customs laws. The "Chairman" position will also be replaced with "Secretary".
The organogram for the Income Tax Policy wing under the Revenue Policy (RP) division will be: secretary, additional secretary, joint secretary, deputy secretary, senior assistant secretary, and assistant secretary.
The Revenue Management (RM) division will be led by a secretary, followed by director general, commissioner/additional DG, additional tax commissioner/director, joint commissioner/director, deputy commissioner of taxes, tax commissioner, additional assistant tax commissioner, and tax inspector.
"As the NBR was dissolved through the bifurcation ordinance on May 12, 2025, the law must replace NBR with Revenue Policy (RP) and Revenue Management (RM)," he added.
After approval of the amended ordinances, around 80 per cent of the bifurcation work will be complete, while the remaining steps involve framing rules for the ordinances and finalising the organogram, he said.
A number of NBR officials, however, see challenges after separating the tax policy and management wings, including coordination between policy framing and implementation.
"I apprehend a culture of blame between the two entities if any complexities arise in field-level tax offices," said a field-level tax official.
He also warned of potential adverse effects on revenue mobilisation during the transition period as the policy wing shifts to the Secretariat.
The amended ordinances define the tasks of the Revenue Policy and Revenue Management wings for income tax, customs, and VAT, he said.
To complete the bifurcation, NBR earlier formed five committees to amend the three laws, frame rules, and finalise the organogram.
A senior NBR official says there are still concerns in the RP division, as its positions, promotions, transfers, and other decisions will now be taken by the administration cadre -- a responsibility that was solely under NBR earlier.
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