Taxation machinery: PM proclaims carrot-and-stick approach

ISLAMABAD: Prime Minister Shehbaz Sharif has categorically conveyed to the tax machinery that tax officials, who would show good performance, would be extended maximum incentives, but those under-performing would be penalised.

He was speaking at the launching ceremony of new Performance Management System for FBR officers at the FBR Headquarters on Friday.

The new Performance Management System for FBR officers is based on grading tax officials as “A”, “B”, “C”, “D” and “E” based on their integrity, honesty and performance in the field formations.

PM chairs meeting on performance of FBR

The prime minister also announced to replicate this system in other government institutions to promote the culture of penalty and reward aimed at improving the performance of the institutions.

He stated that the tax officers who would do a good job will be given public recognitions, promotion, and incentive policy to encourage and inspire tax officials producing tangible results.

Those who would not work, would be subjected to penalties, the prime minister warned the tax officials.

To improve the performance of the FBR officers and promote a system of accountability and reward, the prime minister also launched a fully automated and digital system for evaluating officer performance. Through this system, officers will be eligible for financial incentives and promotions based on their performance.

During his visit to the FBR, the prime minister was briefed on PRAL (Pakistan Revenue Automation Limited), digital invoicing, and the newly launched Performance Management System.

Addressing the tax officials, he said that if we want to move away from the International Monetary Fund (IMF), we must work hard to increase our revenues.

He said the FBR revenues witnessed an increase of 27 per cent, for which the entire FBR team deserved appreciation.

However, he said this was a long journey and more work was needed to plug the loopholes in the system.

The prime minister commended the efforts of the finance minister, the secretary finance, the chairman FBR and the entire team for launching such an effective performance system.

He also visited the newly established delivery unit of FBR and interacted with officers.

The prime minister was informed that a data-driven decision-making system was being introduced at the FBR. This includes data collection from NADRA, banking institutions, and other sectors regarding payments and asset purchases. In order to align FBR with international standards and expand the tax base, the Board is taking steps toward implementing a modern and automated system.

In line with the prime minister’s vision for reforms and digitisation of the FBR, the entire value chain is being digitised. Furthermore, preparations for launching the digital invoicing system have been completed and it will be officially rolled out soon.

It was also shared during the briefing that tax return forms for the current fiscal year had been further simplified. Under the new system, more than 35 additional companies have been brought into the tax net.

The prime minister also visited the newly established FBR delivery unit, where he met with officers and reviewed the system.

He praised the setup saying that the officers working in the Unit were a valuable national asset. He expressed hope that they will play a key role in modernising Pakistan’s tax system and boosting national revenue.

The prime minister added that the FBR must install scanners at ports without the help of donor agencies to check under-invoicing and mis-declarations of imported goods. The government is ready to fund the installation of scanners at ports etc.

He added that the investors must be given respect during their interaction with the tax officials.

The FBR officials should be fair with the taxpayers of the country including investors.

Copyright Business Recorder, 2025