The Federal Board of Revenue (FBR) has announced amendments to its Inland Revenue Reward Rules, 2021, introducing a new category of monetary rewards specifically for Cadre Officers of the Inland Revenue Services (BS-17 and above). This development comes as part of the FBR’s broader Transformation Plan for 2024, as outlined in a notification issued on April 16, 2025.
According to the official notification, S.R.O. 604(I)/2025, the FBR has exercised its powers under various tax ordinances and acts, including the Income Tax Ordinance, 2001, the Sales Tax Act, 1990, the Federal Excise Act, 2005, and the Islamabad Capital Territory (Tax on Services) Ordinance, 2001, to implement these changes.
The key amendment involves the addition of a new clause to the definition of “reward” within the Inland Revenue Reward Rules. This new clause, designated as “(d) Monetary Reward under FBR Transformation Plan, 2024,” explicitly recognizes this new form of incentive.
Furthermore, a new clause (ix) has been added after clause (viii) in rule 2 of the existing rules. This clause clarifies that the “Monetary Reward under FBR Transformation Plan, 2024 shall be sanctioned to the Cadre Officers of Inland Revenue Services (BS-17 and above) as per their ranking under the performance management regime as approved in the FBR Transformation Plan. 2024.”
This indicates that the monetary rewards will be directly linked to the performance of these officers, based on their ranking within the performance management system established under the FBR Transformation Plan of 2024. The specific details of the reward structure and the performance management regime are expected to be further elaborated upon by the FBR.
The notification, signed by the Second Secretary (Rules & SROs) of the FBR’s Revenue Division, follows a previous notification (S.R.O. 580(I)/2025) dated April 9, 2025, which likely laid the groundwork for these amendments.
This move by the FBR is seen as a significant step towards incentivizing performance and potentially boosting morale within the Inland Revenue Services. By linking monetary rewards to the performance management system, the FBR aims to encourage efficiency and effectiveness amongst its higher-ranking officers.
The FBR’s Transformation Plan for 2024 has been a subject of much discussion, with the government emphasizing the need for modernizing the tax collection system and improving revenue generation. The introduction of these performance-based monetary rewards is likely a key component of this broader strategy.
Further details regarding the implementation and specifics of the “Monetary Reward under FBR Transformation Plan, 2024” are expected to be released by the FBR in due course.
