PM Announces Incentives and Penalties Based on Performance for Tax Officials

ISLAMABAD: Prime Minister Shehbaz Sharif has made it clear to the tax authorities that tax officers demonstrating exceptional performance will receive significant incentives, while those who underperform will face penalties.

He made these remarks at the launch of the new Performance Management System for Federal Board of Revenue (FBR) officers, held at the FBR Headquarters on Friday.

The newly introduced Performance Management System categorizes FBR officers into grades ranging from “A” to “E,” assessing them on their integrity, honesty, and field performance.

Replication in Other Institutions

The Prime Minister also revealed plans to implement this system across other government institutions to cultivate a culture of both reward and accountability, with the aim of boosting institutional performance.

He noted that tax officers who excel in their duties will be publicly recognized and rewarded through promotions and incentive policies, encouraging them to achieve substantial outcomes.

Conversely, the Prime Minister cautioned that those who fail to perform adequately will be subject to penalties.

To enhance the effectiveness of FBR officers and foster a system of accountability and recognition, the Prime Minister also inaugurated a fully automated and digital platform for evaluating officer performance. This system will enable officers to qualify for financial rewards and promotions based on their assessed performance.

During his visit to the FBR, the Prime Minister received briefings on Pakistan Revenue Automation Limited (PRAL), digital invoicing, and the recently introduced Performance Management System.

Addressing the tax officials, he emphasized that increasing national revenue is essential to reduce reliance on the International Monetary Fund (IMF).

He acknowledged that FBR revenues had increased by 27 percent, commending the entire FBR team for their efforts.

However, he stressed that sustained efforts are needed to address existing systemic loopholes.

The Prime Minister applauded the efforts of the Finance Minister, Finance Secretary, Chairman of the FBR, and the entire team for launching such an effective performance management system.

He also toured the newly established delivery unit of the FBR and interacted with the officers.

The Prime Minister was briefed on the introduction of a data-driven decision-making system at the FBR. This includes gathering data from NADRA, financial institutions, and various sectors regarding payments and asset acquisitions. The FBR is implementing a modern, automated system to align with international standards and broaden the tax base.

Aligning with the Prime Minister’s vision for reforms and digitizing the FBR, the entire value chain is being digitized. Preparations for the launch of the digital invoicing system have been finalized, and its official rollout will occur shortly.

It was also conveyed during the briefing that tax return forms for the current fiscal year have been simplified further. The new system has brought more than 35 additional companies into the tax net.

He lauded the setup, stating that the officers in the Unit are a valuable national asset, expressing optimism that they will significantly contribute to modernizing Pakistan’s tax system and increasing national revenue.

The Prime Minister emphasized that the FBR must independently install scanners at ports to monitor under-invoicing and mis-declarations of imported goods, offering government funding for this initiative.

He also emphasized the importance of treating investors with respect during their interactions with tax officials.

The FBR officials are expected to be impartial in their dealings with taxpayers, including investors.