In a move aimed at strengthening the efficiency and transparency of the tax dispute resolution system, the federal cabinet has given the green light to significant amendments to the rules governing the Appellate Tribunal Inland Revenue (ATIR). The changes, impacting the “Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024,” include revisions to member remuneration and transportation facilities, according to government sources.
The decision follows recommendations from the Legal Reforms Committee, established under the Prime Minister’s directive, which earlier this year highlighted the need for comprehensive legislative and procedural reforms to enhance the operational effectiveness, transparency, and overall functionality of the Income Tax Appellate Tribunal.
Responding to these recommendations, amendments were previously made to Section 130 of the Income Tax Ordinance, 2001, under the Tax Laws (Amendment) Act, 2024. These earlier changes established a framework for the federal government to appoint tribunal members through specifically defined rules.
The approved “Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024” were initially created to establish a structured, transparent, and merit-based process for appointing tribunal members. Following the initial notification of these rules (SRO 690(1)/2024), vacancies were advertised and the National University of Sciences and Technology (NUST) was tasked with conducting skill-based tests for potential members. This rigorous testing process resulted in a shortlist of just six candidates for interview by a dedicated selection committee.
To ensure the appointment of highly qualified individuals, the government engaged leading consulting firms A.T. Kearney Middle East Ltd. and Sidat Hyder Management Consulting. These firms, experts in headhunting and organizational review, were tasked with facilitating the recruitment of top-tier professionals for the Appellate Tribunal and conducting a thorough market survey on appropriate remuneration for tribunal members.
Their comprehensive review and market analysis led to proposed amendments to the appointment rules and recommendations for revised remuneration packages for both tribunal members and the chairman. These proposals were subsequently vetted by the Attorney General of Pakistan and the Chairman of the Federal Board of Revenue, undergoing thorough deliberation and consultation with relevant stakeholders.
Recognizing the urgency of the matter, and under the Prime Minister’s directives, the proposed amendments were directly submitted to the federal cabinet for approval, bypassing the usual review process of the Cabinet Committee for Legislative Cases (CCLC).
The cabinet, after careful consideration of the summary presented by the Law and Justice Division, approved the amendments. While giving its assent, the cabinet also specified a detail regarding transportation facilities, clarifying that the provision would be “up to a 1400cc car,” taking into account evolving vehicle manufacturing standards.
These approved amendments are expected to streamline the appointment process, attract highly qualified professionals to the Appellate Tribunal Inland Revenue, and ultimately contribute to a more efficient and effective tax dispute resolution system within the country.
