Pakistan’s PM warns tax officials against resisting reforms — Dawn

Pakistan’s Prime Minister Shehbaz Sharif said the authorities would not tolerate resistance to reforms at the Federal Board of Revenue (FBR) and instructed officials to accelerate measures to reduce the country’s tax gap.

As Dawn reports, the statement was made during a weekly briefing on tax reforms. It came after the Tax Service Officers Association called for a strike involving a work stoppage. The call was withdrawn following the intervention of senior FBR officials.

Warning to tax officials

FBR Chairman Rashid Mahmood Langrial presented the prime minister with a pilot project for audits and assessments without direct contact between tax officials and taxpayers. According to a Dawn source, Shehbaz Sharif expressed dissatisfaction with the strike announcement and said that employees unwilling to work would be asked to leave the service.

The prime minister also reminded tax service employees about a fourfold salary increase, as well as the provision of cars and housing. He said they must deliver results and justify the incentives provided. Sharif instructed officials to take non-selective action against corrupt officials, while giving employees who improve their conduct and work performance an opportunity to reform.

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NFC pilot project

The FBR has established the National Faceless Centre (NFC) in Islamabad, whose units will conduct audits and assessments under a system without direct contact. Its aim is to reduce official discretion and contact between officials and taxpayers.

The centre was initially staffed with 27 officials. Under the pilot project, which took effect on October 1, it is to process and verify third-party data on 300,000–400,000 individuals. The data will be transferred to the NFC in stages after an initial compliance check.

In addition, the FBR suspended two Inland Revenue Service officers at BS-20 and BS-19 grades and recalled two more BS-20 officers to headquarters for further investigation. This is related to an unauthorized press statement and a call to stop official work.