IRSOA rejects FBR’s transformation plan as non-indigenous

A press release issued by association claimed that plan was not an internally generated initiative of FBR

By News Desk
September 22, 2024
The Federal Board of Revenue (FBR) building can be seen. — X/FBRSpokesperson/File

ISLAMABAD: The Inland Revenue Service Officers Association (IRSOA) has expressed strong opposition to the Federal Board of Revenue’s (FBR’s) new transformation plan and showed grave concerns over its content and execution.

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The IRSOA, which represents over 1,300 officers, instrumental in collecting more than Rs9 trillion annually, disapproved the plan for several reasons, claiming it was not developed in consultation with the officers and raised serious concerns about transparency and fair treatment within the department.

A press release issued by the association on Saturday claimed that the plan was not an internally generated initiative of the FBR. Despite media reports suggesting otherwise, the association clarified that a task force of IRS officers was hastily assembled to analyse data and identify tax gaps, without any role in formulating the plan’s recommendations or proposals. This lack of internal input resulted in widespread dissatisfaction among officers.

The association highlighted that repeated requests for meetings, including formal submissions, were ignored. The lack of consultation exacerbated feelings of alienation among the officers, who feel their concerns were being sidelined.

The IRSOA severely criticised what it perceived as discriminatory practices within the transformation plan, particularly the implementation of the 60/40 peer rating system for performance assessments. Officers argue that the system was demoralising and unfair, especially when compared to other civil servant groups. Instead of subjective peer evaluations, the IRSOA proposed that performance assessments be based on objective measures such as new taxpayer registrations, recovery performance and audit outcomes.

The release said the officers are burdened with excessive reporting requirements to senior officials, preventing them from focusing on core responsibilities. The transformation plan, according to IRSOA, failed to address basic needs such as adequate salaries, transportation, and accommodation for junior officers. Without providing essential resources, IRSOA argued, the transformation plan was destined to fail.

The association also highlighted concerns over disparities in how integrity issues are addressed within the FBR, noting that IRS officers often face harsher scrutiny compared to their counterparts in the Pakistan Customs Service (PCS).

The IRSOA issued a set of demands to address these concerns. These include aligning salaries and allowances for IRS officers with those of other service groups, providing logistical support for field enforcement activities, ensuring necessary staff and amenities for field formations and devolving authority to empower officers in the field. The association also stressed the need for prioritising career progression and international training opportunities to enhance the skills and experience of IRS officers.

The plan’s approach to accountability also drew criticism. The IRSOA strongly opposed the hiring of external auditors from the private sector, citing concerns over accountability and potential data leaks. Instead, the association advocated for recruiting auditors from within the organisation to ensure accountability and prevent scandals like those involving Pakistan Revenue Automation Limited (PRAL) in the past.

The IRSOA also emphasised the importance of aligning FBR’s digital strategy with its objectives, particularly in enhancing taxpayer experience and operational efficiency. Improved data analytics and intelligence sharing, they argue, were critical for increasing tax revenue. However, the transformation plan failed to institutionalise access to vital data and decentralise it to relevant stakeholders.

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