ISLAMABAD: The Federal Board of Revenue (FBR) has officially activated the International Centre of Tax Excellence (ICTE) to enhance international tax cooperation, revenue forecasting, tax analysis, and the overall design and delivery of tax administration. This initiative aims to maximize revenue collection and modernize Pakistan’s tax system.
In a recent notification, the FBR has assigned additional responsibilities to several Inland Revenue Service (IRS) officers (BS-18 to BS-20) to oversee the ICTE’s operations for a three-month period or until the appointment of regular staff. The officers include Samira Mahmood Quiz (IRS/BS-20), Chief of International Tax Operations; Frida Muhammad (IRS/BS-19), Chief (OPS) of International Taxes; and Mehdi Hassan (IRS/BS-18), Secretary (OPS) for AEOI, as per the Directorate General of International Tax Operations, FBR.
Functions of the ICTE
Under Section 230J of the Income Tax Ordinance 2001, the ICTE has been established to contribute significantly to tax policy development. Its primary objectives include drafting model tax policies, conducting interdisciplinary research, fostering international tax cooperation, and organizing seminars and workshops on international taxation. It also focuses on building the capacity of Inland Revenue officers, enhancing tax analysis, and closing tax gaps within existing provisions.
Governance Structure
The ICTE will operate under a robust governance framework. A Nominating Committee comprising the Minister-in-Charge, Secretary Revenue Division, and Secretary Finance will recommend candidates for the roles of Executive Director and independent members of the Executive Committee to the federal government.
The Executive Committee will include the FBR Chairman, Member (IR-Policy), Member (IR Operations), and two independent members appointed by the federal government. The Executive Director, serving as the committee’s secretary, will also act as the chief executive of the institute, overseeing its daily operations and ensuring its independence.
Staffing and Data Handling
At least 50% of the ICTE’s workforce will comprise serving or retired Inland Revenue officers with over five years of experience in tax policy or administration. Staff remuneration and terms will be determined by the federal government.
The FBR may establish monitoring committees and appoint project directors to facilitate the institute’s establishment. Additionally, any taxpayer data provided to the ICTE for analysis will be anonymized to ensure confidentiality in compliance with Section 216 of the Income Tax Ordinance.
This step is part of FBR’s broader vision to modernize Pakistan’s tax administration and enhance fiscal governance.