Federal Board of Revenue Act (FBR), 2007 (extracted from Finance Act, 2007)

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THE FEDERAL BOARD OF REVENUE ACT, 2007 
 
 
 
 
 
                                    CONTENTS 
       ___________ 
 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Establishment of the Federal Board of Revenue 
4.  Powers and functions of the Board 
5.  Human resource management 
6.  Establishment of Policy Board 
7.  Representation to the Chairman 
8.  Delegation of functions and powers by the Board 
9.  Validity of proceedings 
10.  Directions from Federal Government 
11.  Budget and accounts of the Board 
12.  Annual report 
13.  Indemnity 
14.  Power to create and maintain data bank 
15.  Continuance in force 
16.  Properties and assets, etc., to vest in the Board 
17.  Continuance of service of the employees, etc., of the Central Board of Revenue after the  
reconstitution of Federal Board 
18.  Reference to Central Board of Revenue 
19.  Board may impose any fee or charges 
20.  Act to override other laws 
 

 
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21.  Power to make rules 
22.  Power to make regulations 
23.  Repeal and savings 
24.  Removal of difficulties 
  
 
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THE FEDERAL BOARD OF REVENUE ACT, 2007 
ACT No. IV OF 2007  
[2nd July, 2007]    
AN  
ACT 
to provide for the establishment of Federal Board of Revenue and for matters connected 
therewith or ancillary thereto 
WHEREAS it is desirable to enhance the capacit y of the tax system to collect due taxes 
through application of modern techniques, providing assistance to tax payers and creating a 
motivated, satisfied, dedicated and competent professional work force that is required to perform at 
an enhanced efficiency levels; 
 
WHEREAS the Federal Board of Revenue must pursue its objective and vision to be a 
modern, progressive, effective, autonomous and credible organization by providing quality services 
and promoting compliance with tax related laws, while being mindf ul of upholding values such as 
integrity, professionalism, teamwork, courtesy, fairness, transparency and responsiveness; 
 
WHEREAS it is expedient to regulate the matters relating to the fiscal and economic policies; 
administration, management; imposition, levy and collection of taxes and duties; 
 
AND WHEREAS it is necessary to re-organize the Board of Revenue to enhance the scope of 
activities and operations and to have appropriate autonomy and reconstituting Central Board of 
Revenue as the Federal Board of Revenue; 
 
It is hereby enacted as follow: 
 
1. Short title, extent and commencement. ⎯(1) This Act may be called the Federal Board 
of Revenue Act, 2007. 
 
(2) It extends to the whole of Pakistan. 
 
(3) This section shall come into force at once and the remai ning provisions shall come into 
force on such date as the Federal Government may, by 2notification in the official Gazette, appoint 
and different dates may be appointed for different provisions. 
 
2. Definitions.⎯In this Act, unless there is anything repugnant in the subject or context,⎯ 
 
(a) “Board” means the Central Board of Revenue established under the Central 
Board of Revenue Act, 1924 (IV of 1924), and on the commencement of 
Federal Board of Revenue Act,  2007, the Federal Board of Revenue 
established under section 3 thereof; 
 
                   (b) 1[*    *    *    *    *     *            *] 
_________________________________________________________________________________ 
1Omitted by Act No. VI of 2011, s.2  
2Vide R.O. 1064(I)/2007 the Federal Government notified 1st November, 2007 to be the date on which the remaining provisions came into force. 
 
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(c) “Central Board of Revenue” means the Central Board of Revenue established 
under the Central Board of Revenue Act, 1924 (IV of 1924); 
 
(d) “Chairman” means  the Chairman of the Board appointed by the Federal 
Government and shall include acting Chairman for the time being; 
 
(e) “Committee” means a committee constituted under this Act; 
 
(f) “employees” means the persons in the employment and service of the Boar d 
and its offices, organizations and its departments; 
 
(g) “fiscal laws” means in relation to tax matters including but not limited to, the 
Customs Act, 1969 (IV of 1969), Sales Tax Act 1990, Income Tax Ordinance 
2001(XLIX of 2001), Federal Excise Act , 2005, and any other law imposing 
any tax, levy or duty  or having nexus with taxation, or  as the Federal 
Government, may, by notification in the official Gazette, determine; 
 
(h) “human resource policy” means the policy related to employees for the 
purpose of enhancing efficiency in the functioning of the Board, which has 
been approved by the competent authority from time to time; 
 
1[(ha) “incentive” means the incentive as prescribed;] 
 
(i) “member” means any person appointed as a member of the Board; 
 
(j) “person” includes the natural person, entity, any company or association or 
body of persons, whether incorporated or not; 
 
1[(ja) “Policy Board” means the Policy Board established under section 6;] 
 
(k) “prescribed” means prescribed by rules; 
 
1[(ka) “reward” means the reward as prescribed;]  
 
(l) “rules” means the rules made under this Act; and 
 
(m) “regulations” means the regulations made under this Act. 
 
3. Establishment of the Federal Board of Revenue .⎯(1) There is hereby established a 
Board to be called the Federal Board of Revenue, which shall consist of not less than seven members 
to be appointed by the Federal Government. 
 
(2) The Board shall exercise all the powers and functions as were exercisable by the Central 
Board of Revenue under the Central Board of Revenue Act, 1924 (IV of 1924), and all others powers 
and functions conferred on it under section 4. 
 
(3) The Federal Government shall appoint the Chairman on such terms and conditions as it 
may determine. 
 
_________________________________________________________________________________ 
1Inserted by Act No. VI of 2011, s.2. 
 
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(4) The Chairman may designate any member who shall act as an Acting Chairman in his 
absence. 
 
(5) The Chairman shall appoint the Secretary of the Board who shall act under his dire ction 
and shall deal with all matters connected with the meetings of the Board. 
 
(6) In case the appointment of the Chairman is delayed for any reason, the Federal 
Government may appoint or designate the most senior member as an Acting Chairman. 
 
(7) The Board shall meet at least once in two months but a special meeting of the Board may 
be convened by the Chairman at any time or on the request of any member. 
 
(8) The Board may constitute one or more committees to consist of members that are 
appointed by the Board and they shall perform such functions as are entrusted to them by the Board. 
 
(9) The Federal Government may delegate any of its powers under this Act to the Chairman 
on such terms and conditions as the Federal Government may determine. 
 
4. Powers and functions of the Board .⎯(1) The Board shall exercise powers and perform 
all such functions that are necessary to achieve the objects and purposes of this Act and  include the 
following, namely:⎯ 
 
(a) to implement the tax administration reforms; 
 
(b) to promote voluntary tax compliance and to make the Board a service oriented 
organization; and to implement comprehensive policies and programs for the 
education and facilitation of taxpayers, stakeholders and employees, etc., in 
order to develop the Board into a modern efficient authority; 
 
(c) to adopt modern effective tax administration methods, information technology 
systems and policies in order to consolidate assessments; improve processes, 
organize registration of tax payers, widen the tax base, and make  departmental 
remedies more efficient including enforcement of, or reduction or remission 
in, duty, penalty or tax, in accordance with the relevant law for the time being 
in force; 
 
(d) to improve the productivity through a comprehensive and effective huma n 
resource strategy; 
 
(e) to identify and select through Internal Job Posting process the employees for 
designated jobs; 
 
(f) to grant additional allowances or any other incentives and rewards to the 
employees and members of the Board; 
 
(g) to take appropr iate measures including internal controls to combat corruption 
within the organizations under the Board and provide checks to ensure the 
integrity of employees that is verified periodically through applicable 
procedure which shall be made one of the criter ion for promotion and 
incentives; 
 
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(h) to re-designate existing posts within its jurisdiction, prepare job description of 
any post and create posts in accordance with the rules; 
 
(i) to direct or advise, where necessary, investigation or inquiry into suspec ted 
duty tax evasion, tax and commercial fraud,  money-laundering, financial 
crimes cases and to coordinate with the relevant law enforcement agencies; 
 
(j) to introduce and maintain a system of accountability of performance, 
competence and conduct of the employees. 
 
(k) to implement the provisions of all the fiscal laws for the time being in force 
and to exercise all powers provided under the provisions of the fiscal laws and 
to take any action, make policy, issue rules or guidelines for the purpose to 
make the implementation of the fiscal laws clearer, transparent, effective and 
convenient; 
 
(l) to implement international obligations pursuant to a treaty, resolution or any 
international commitment; 
 
1[(m) to establish a F oundation and Fund relating thereto so as to provide support 
and facilities to the employees, and for the welfare of the serving and retired 
employees and their families, and to create, establish, organize, assist in the 
social and cultural activities.] 
 
(n) to create a surplus pool of employees as and when required; 
 
(o) to make regulations, policies, programs, strategies in order to carry out the 
purposes of this Act; 
 
(p) to engage any person or entity on contract basis to carry out assignments or for 
the consultancy in accordance with the rules of the Federal Government; 
 
(q) to regulate and enter into any agreement, contract, understanding, with any 
international organization or institution or donor agency or counter part entity 
with approval of the Federal Government; 
 
(r) to create field formations of Board for greater efficiency in implementation of 
fiscal laws and refer to them with appropriate titles; 
 
(s) to set up mechanism and processes that facilitate removal of grievances and 
complaints of the tax payers; 
 
(t) to carry out any ot her function, activity and acts, etc., as decided and 
determined by the Board; 
 
 
 
 
1Subs. by Act No. VI of 2011, s. 3.  
 
 
 
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(u) to enable electronic communication in respect of all taxation matters such as e-
filing, e-payments, e-notice, e-notification, digital imaging, protocols or 
agreements as may be prescribed; and 
 
(v) to perform any other functions entrusted from time to time by the Federal 
Government. 
 
(2) The Board may, where appropriate, issue statutory rules and orders (SROs), orders, 
circulars and instructions for the enforcement of any of the provisions of fiscal law and the provision 
of this Act. 
 
(3) The Board shall perform all other functions assigned by the Federal Government for the 
purpose of implementation of this Act. 
 
5. Human resource management.⎯(1) The power of the Board in respect of its employees 
shall include, interalia, the following powers, namely:⎯ 
 
(a) power to implement the human resource policy; 
 
(b) power to assess, identify, create, decrease and reduce or designate or  re-
designate posts and prepare, execute the internal job posting regime in 
accordance with the rules; 
 
(c) power to lay down qualifications and criteria for the posting of employees 
against specialized or available posts; 
 
(d) power to implement a transparent eval uation process to assess if the official is 
qualified for posting against a specialized or available post; 
 
(e) power to make assessment of integrity of the employees for the purpose of 
evaluation process or for the purpose of posting, promotion or transfer; 
 
(f) power to transfer, select or post the official or employees against any post on 
the basis of transparent criteria of selection for internal job postings or 
transfers; 
 
(g) power to transfer any official to any post in any entity controled by the Board; 
 
(h) power to prepare and recommend to the competent authority, the voluntary 
severance scheme and on approval subsequently implement the same; 
 
(i) power to take any action, make rules, regulations, guidelines, code of conduct, 
in order to fulfill the objects and purposes of the Act; 1[*]. 
 
(j) powers to make rules for uniformed services with regard to maintenance and 
up keep of uniform and discipline and matter connected therewith or 
incidental thereto 1[;and] 
 
 
1Omitted & subs. by Act No. VI of 2011, s. 4.  
 
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1[(k) power to grant incentives and rewards to the employees and reward to the 
person assisting the employees in preventing evasion of duties and taxes. The 
Board shall, with the approval of the Policy Board, prescribed performance 
standards for the employees and criteria for grant of incentives and rewards.]  
 
(2) Notwithstanding the appointment of any official against any post, the official shall not 
have any vested right to retain the said post. 
 
(3) Notwithstanding the policy of selection, ince ntives, award or any such benefit,  no 
employee shall be treated by the Board on terms less favorable to the ones that he was availing as per 
terms and conditions of his employment except the allowances, benefits, incentive specific to any 
post under internal job posting process or any other consideration relatable to the assignment. 
 
1[6. Establishment of Policy Board .⎯(1) The Federal Government may establish a Policy 
Board to provide guidance in matters relating to the vision, mission, and values of the Bo ard, and to 
provide policy guidelines in framing fiscal policy and in achieving goals and targets. 
 
 (2) The Policy Board shall consist of the following Members, namely:⎯ 
 
 (a) Minister for Finance.      Chairman 
 
(b) Minister for Commerce.     Member 
 
(c) Minister for Industries.     Member 
 
(d) Minister for Textile Industries.    Member 
 
(e) Minister for Privatization.     Member 
 
(f) Chairman Senate Standing Committee on   Member 
 Finance and Revenues.     
 
(g) Chairman National Assembly Standing    Member 
Committee on Finance and Revenue.     
 
 (h)  Chairman, F.B.R.      Member 
 
 (i)  One Member from the Senate to be     Member 
nominated by Chairman, Senate.     
 
 (j)  One Member from the National Assembly   Member 
 to be nominated by Speaker National Assembly.   
 
 
(k)  Such other members as the Prime Minister   Member 
 shall nominate having necessary qualifications, 
 experience and expertise from amongst sectoral  
  specialists and business on honorary basis.    
 
 
 
1Added & Subs. by Act No. VI of 2011, ss. 5-6.   
 
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(3) The Chairman of the Federal Board of Revenue shall act as Secretary for the Policy 
Board. 
 
(4) The Policy Board shall hold a meeting at least once in each quarter of a financial year. 
 
(5) The nominated members other than ex-officio members shall be subject to ratification by 
the Standing Committees on Finance and Revenue of the Senate and National Assemblies.] 
 
7. Representation to the Chairman. ⎯(1) Any person aggrieved by any action done or 
taken for the enforcement of the fiscal laws or du e to any act of  maladministration, corruption and 
misbehavior by any officer or employee of the Board or any unnecessary delay or hardship caused 
due to any administrative process may prefer representation to the Chairman for redressal of his 
grievance. 
 
(2) The Chairman or the Board or any other designated officer, as the case may be, on behalf 
of the Chairman, shall take the appropriate action to redress such grievance. 
 
8. Delegation of functions and powers by the Board .⎯The Board may, subject to such 
conditions as it deems necessary, delegate any of its functions and powers to any Government 
agency, Chairman or any member 1[* *] duly appointed under this Act. 
 
9. Validity of proceedings. ⎯No act proceeding, decision or order of the Board or a 
committee of the Board shall be invalid by reason only of the existence of vacancy in, or any defect 
in the constitution of, the Board or any committee. 
 
10. Directions from Federal  Government.⎯The Federal Government may, from time to 
time, direct or advise the Board to conduct its affairs and perform its functions in such manner as 
may be specified by the Federal Government in this behalf. The Federal Government may also 
entrust the Board the functions and powers under any law for the time being in force and such 
directions shall be binding on the Board. 
 
11. Budget and accounts of the Board. ⎯(1) The Board shall, in respect of each financial 
year, in accordance with the prescribed financial procedure, prepare its accounts of the receipts and 
payments and budget estimates and submit the same to the Finance Division for further process. 
 
(2) Once the budget has been approved, the Board shall have the full powers to incur 
expenditure, or re-appropriate funds, subject to any general or specific instructions that the Finance  
Division or any other competent forum or authority may from time to time issue in this regard. 
 
(3) The Board shall maintain its accounts in accordance with the procedure prescribed by the 
Controller General of Accounts and such accounts shall be audited by the  Auditor-General of 
Pakistan. 
 
(4) The Board shall provide an annual financial report to the Federal Government. 
 
12. Annual report.⎯The Board shall prepare an annual report of its activities and present it 
to the Prime Minister and the Board shall lay it before the National Assembly and the Senate. 
 
 
1Omitted by the Finance Act, 2024 (X of 2024), s. 10. 
 
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13. Indemnity.⎯No prosecution, suit or other legal proceeding shall lie against the Board, 
the Chairman, Members, officers and the other employees fo r anything done in good faith for 
carrying out the purposes of this Act, rules or regulations or orders made or issued thereunder. 
 
14. Power to create and maintain data bank .⎯(1) The Board shall create and maintain a 
data bank containing information from third parties necessary to perform the objects and purposes of 
this Act. Such data shall be used for increasing the taxpayers base and to ensure accuracy of 
information submitted by existing taxpayers and for the financial analysis leading to proper 
economic assessments, audits, detection of tax evasion and policy decisions as may be necessary. 
The data shall be used further to evaluate the performance of the employees. 
 
(2) The Board shall have power to share its data and obtain data from the data bases 
maintained by the Federal Government or a Provincial Government or any of its statutory body, law 
enforcement entity  or utility companies, stock exchanges,  State Bank, banks, financial institutions, 
the trade bodies and any other organizations. 
 
(3) The Board may advise any entity in respect of collecting tax related information as may 
be required by the Federal Board under arrangement between the Board and such entity or person. 
 
15. Continuance in force .⎯(1) All orders made, proceedings taken and acts done by the 
Central Board of Revenue which were in force and in effect before the commencement of this Act, 
shall continue in force unless modified pursuant to any provision of this Act or the rules and 
regulations made thereunder. 
 
(2) All existing rules, regulations, procedures, notifications, statutory rules and orders (SROs) 
and orders in effect or in operation or adopted in or by the Central Board of Revenue shall continue 
to be in force if they are not inconsistent with any provision of this Act and shall continue to be in 
force until rescinded, altered, revised or amended by the competent authority under the provisions of 
this Act or rules made thereunder. 
 
(3) All existing contracts, agreements and commitments made by the Central Board of 
Revenue for the purpose of Central Board of Revenue Act 1924 or rules made or notifications issued 
thereunder or by any person under its authority, in effect, on the commencement of this Act, shall 
continue to be in force till amended or modified or rescinded by the competent authority. 
 
16. Properties and assets, etc., to vest in the Board.⎯ (1) All properties, assets and records 
which, before the commencement of this Act, were vested in or belonged or allocated to the Central 
Board of Revenue shall vest in and become the  property of the Federal Board of Revenue from the 
commencement of this Act. 
 
(2) The logo, insignia, stationary, printed forms, returns, challans and online communication 
shall continue to be utilized unless prescribed otherwise under the rules and in any  other case as 
modified by the Board. 
 
(3) All rights, liabilities and obligations of the Central Board of Revenue, whether arising out 
of contract or otherwise, shall be the rights, liabilities and obligations of the Board under this Act. 
 
(4) All intellectual property rights arising from technical or professional report, analysis, or 
system, written, prepared or developed by the employees of the Central Board of Revenue shall vest 
in the Federal Board of Revenue. 
 
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17. Continuance of service of the employee s, etc., of the Central Board of Revenue after 
the reconstitution of Federal Board. ⎯ (1) Subject to the provisions of this Act, any person who 
immediately before the  commencement of this Act was in the employment and service of Central 
Board of Revenue, it s field offices, organizations and attached departments, shall continue to be in 
the employment and service of Federal Board of Revenue, its field offices, organizations and 
attached departments, on the same terms and conditions as were applicable to him a s an employee of 
the Central Board of Revenue, unless modified or amended under the provisions of this Act or the 
rules or regulations made thereunder. 
 
(2) All the authorities , members, officers and employees of the Central Board of Revenue 
throughout Pak istan exercising functions immediately before commencement of this Act shall 
continue to exercise their respective, powers, policies, programmes, reforms, projects, functions and 
processes etc. as were being carried out, or proposed to be carried out, unle ss modified under the 
provisions of this Act or rules and regulations made thereunder. 
 
18. Reference to Central Board of Revenue .⎯Subject to the provisions of this Act, 
reference to Central Board of Revenue (CBR) wherever occurring in any law or the rules , 
regulations, orders, statutory rules and order (SROs) or notifications, etc, for the time being in force 
shall be read as a reference to the Federal Board of Revenue. 
 
19. Board may impose any fee or charges .⎯The Board may levy any fee or charges for 
making expenditure on the provision of enhanced facilities for the taxpayers, or direct cost 
reimbursement of expenses, and reasonable return on investment or profit; where services are 
provided in the matters relating to or under any fiscal law under public-private partnership. 
 
20. Act to override other laws.⎯The provisions of sections 4, 5, 11, 13, 16,  18 and 19 shall 
have effect notwithstanding anything to the Contrary contained in any other law for the time being in 
force and the rules made thereunder. 
 
21. Power to make rules.⎯The Federal Government may make rules for the purposes of this 
Act. 
 
22. Power to make regulations.⎯The Board may make regulations for the administration of 
this Act. 
 
23. Repeal and savings. ⎯(1) Subject to the provisions of this Ac t, the Central Board of 
Revenue Act, 1924 (IV of 1924) is hereby repealed. 
 
(2) Except as otherwise provided in this Act, the repeal of the Central Board of Revenue Act, 
1924 (IV of 1924), under sub-section (1), hereinafter referred to as the said Act, shall not,⎯ 
 
(a) revive anything not in force or existing at the time of commencement of this 
Act; 
 
(b) affect the previous operation of the repealed Act or anythi ng duly done under 
the said Act; 
 
(c) affect any right, privilege, obligation or liability acqui red, accrued or incurred 
under the said Act; 
 
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(d) affect any penalty, forfeiture or punishment incurred in respect of any offen ce 
committed under the said Act; or 
 
(e) affect any investigation, legal proceeding or remedy in respect of any such 
right, privil ege, obligation, liability, penalty, forfeiture or punishment as 
aforesaid; 
 
and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and 
any such penalty, forfeiture or punishment may be imposed as if the said Act had not been repealed. 
 
24. Removal of difficulties .⎯The Federal Government may, for the purposes of removing 
any difficulty or for bringing the provisions of this Act into effective operation, by order, direct that 
provisions of this Act shall, during such  period as may be specified in the order, have effect subject 
to such adaptations whether by way of modification or addition or omission as it may deem to be 
necessary or expedient: 
 
Provided that the power under this section shall not be exercised after e xpiry of three years 
from the commencement of this Act.”. 
 
 
 
 
 
___________ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RGN Date: 09-08-2024