The Central Board of Revenue (CBR) will issue an 'administrative order' for issuance of new 'Unified Reward Rules 2005' for customs, income tax and sales tax officials.
Official sources told Business Recorder on Sunday that the CBR has the authority to issue an order for notifying the new reward rules. Therefore, there is no need of issuing a Statutory Regulatory Order (SRO) or vetting by the Ministry of Law and Justice for this purpose.
Similarly, there is no legal restriction to take approval of the Finance Division prior to issuance of these rules.
The government has already given powers to CBR to independently deal with reward matters under the ongoing reform plan. They said that the 'reward rules' have been finalised, keeping in view recommendations of the Board-in-Council.
Under the new rules, the amount of reward will be restricted to two years' pay in a year and Rs 2 million in entire service of an officer. The reward for meritorious services will also be restricted up to two months' pay in a year.
The CBR has approved 'Reward Rules 2005' based on distribution criteria under which 15 percent of the reward money would go to informers, 35 percent to officers and officials and 50 percent to the 'Common Pool Fund'.
The reward will be admissible and will be restricted to only anti-smuggling activities and for the seizure of items, including arms and ammunitions, drugs and narcotics, intellectual property rights, liquor and gold.
A tax expert said that it was not clear why 50 percent reward would be deposited into the CPF, which was declared illegal by the Public Accounts Committee.