On the recommendation of the task force to review redundant annual confidential reports (ACRs) system, the Central Board of Revenue (CBR) has asked all members, collectors and commissioners to weigh the new "Performance Management System (PMS)" for evaluation of tax officials. Based on the experts' viewpoint in Karachi, Lahore and Islamabad, the task force has identified serious shortcomings in the prevailing ACRs system.
The system has totally failed to achieve desired results. The current system has been found highly subjective and it failed to identify and communicate areas of improvement to the employees due to confidentiality. The ACRs system provides no linkage with the organisational goals, which needs to be re-designed.
Moreover, it has not been able to provide a mechanism for distinguishing between good and poor performers. Analysis of all units has shown that most of the employees are rated either excellent or very good, which is not a true reflection of their performance, the task force added.
The task force has also pointed out that the ACRs system is annual and provides no feedback or mid-year analysis. Reporting officials often favour the assessee. CBR Member, Human Resource Management (HRM), Zafar Aziz Osmani told Business Recorder on Monday that in the fist phase, the new system would work as an attachment along with the existing ACRs system.
Once the PMS system is fully operational, the CBR will replace the same with the ACRs after obtaining necessary government approval. The system has been devised and now it is in the implementation phase, he added.
The CBR has directed all these tax officials that the proposal of the new PMS has been developed by the HRM wing in line with the CBR Tax Administration Reform Program (TARP).
The new system will distinguish between outstanding, good and poor performers and recognise and reward them accordingly. The PMS proposal has been developed taking into account the extensive interaction from three task forces at Lahore, Karachi and Islamabad.
The task forces included senior/middle-level officers of both customs and income tax groups.
All participants were briefed on the modern PMS and the transition already experienced during the change in both the public and private sector companies through presentations made by senior executives of the institutions like the SBP, PSO, NBP, Shell Pakistan, etc.
The groups were also briefed on best practices in the PMS in revenue authorities in other countries like IRS in the United States.
Taking into consideration discussions and consolidation of the feedback from workshops and also keeping into consideration the input from multilateral agencies and HRA advisor from the Maxwell Stamp, the HRM wing has developed the attached draft of the concepts and proposed strategy for the PMS.
The new system would help in accurate assessment of tax officials' performance throughout the year. In this regard, broad parameters have been devised for the development of the new system.
The CBR has tried to revamp the system of performance evaluation due to the inherent faults and failure of the existing system. The new system will evaluate the performance of tax officials on quarterly basis and linked with the assigned goals and targets, they maintained.
The PMS will focus on setting targets for tax officials, pay for performance, training need assessment and personal development plan, the Member, HRM added.
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