Introduction

The Federal Board of Revenue (FBR) is taking significant steps to enhance revenue collection and recognize exceptional performance within its ranks. In a recent development, the FBR has announced its commitment to contribute to the Inland Revenue Common Pool Fund-2023, utilizing rewards granted to Inland Revenue officials for detecting tax evasion, achieving revenue targets, and demonstrating extraordinary performance in assessments or successful court prosecutions. This article explores the details of this initiative and sheds light on the amendments made to “The Inland Revenue Reward Rules, 2021,” as specified in the S.R.O. 648(l)12023 issued by the FBR.

Contributing to the Inland Revenue Common Pool Fund-2023

The FBR, through the aforementioned S.R.O., has issued a draft outlining further amendments to “The Inland Revenue Reward Rules, 2021.” These amendments pave the way for the contribution of a specific portion of the rewards sanctioned to the Inland Revenue officials into the Inland Revenue Common Pool Fund-2023. According to the new rule, an amount equivalent to 5 percent of the rewards sanctioned under Rule 5 for officers in BS-17 and above, and 2.5 percent of the rewards sanctioned under Rule 5 for officials in BS-16 and below, will be simultaneously processed, approved, and deposited into the Inland Revenue Common Pool Fund-2023.

Expanding the Definition of “Extraordinary Performance”

The revised rules put forth by the FBR bring clarity to the term “Extraordinary Performance.” It now encompasses duly notified activity-oriented tasks assigned to and executed by individual officers, staff members, or groups of officers and staff, showcasing a high degree of excellence. To qualify as an extraordinary performance, the task must be completed within the prescribed timelines and predefined guidelines. Furthermore, any performance approved by the Chairman of FBR, including assessments and successful prosecutions, also falls under the purview of extraordinary performance.

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Benefits of Contribution to the Inland Revenue Common Pool Fund-2023

The decision to contribute a portion of the rewards to the Inland Revenue Common Pool Fund-2023 serves several crucial purposes. Firstly, it encourages Inland Revenue officials to diligently detect tax evasion, achieve revenue targets, and excel in their assessments and court prosecutions. By linking rewards to the fund, it fosters a sense of responsibility and motivation among the officials, driving them to perform to the best of their abilities.

Secondly, the Inland Revenue Common Pool Fund-2023 itself plays a vital role in facilitating various initiatives aimed at enhancing revenue collection and improving tax administration. The contributions made by the FBR, derived from the rewards, will contribute to the fund’s overall financial resources, enabling the implementation of targeted projects and initiatives that can lead to higher revenue generation.

Moreover, this initiative reinforces the importance of recognizing and appreciating exceptional performance within the Inland Revenue department. By channeling a portion of the rewards into the common pool fund, the FBR acknowledges and rewards the dedication, hard work, and exceptional achievements of its officials, fostering a culture of excellence and driving continuous improvement.

Conclusion

The FBR’s decision to contribute to the Inland Revenue Common Pool Fund-2023 from rewards granted to Inland Revenue officials is a commendable step towards incentivizing performance and boosting revenue. By incorporating amendments to “The Inland Revenue Reward Rules, 2021” and expanding the definition of “Extraordinary Performance,” the FBR aims to create a system that recognizes and rewards excellence while simultaneously strengthening the financial resources available for revenue enhancement initiatives. This initiative serves as a testament to the FBR’s commitment to fostering a culture of high performance and ensuring the efficient administration of tax laws.