The Central Board of Revenue (CBR) has directed the legal advisors to examine the proposed golden handshake scheme for its employees before launching it. Sources told Business Recorder on Saturday that the board has asked the CBR Legal Wing to conduct an analysis of the proposed scheme by the end of current year.
In this regard, the board has issued instructions to its legal experts to go through the scheme and make necessary rules or law for implementing the proposed scheme. Sources said that the legal experts are likely to submit their analyses in next January 2008 to the tax authorities. The legal aspects would be examined keeping in view CBR workforce rationalisation plan under the reform process.
It is important to mention that the board had temporarily suspended launching of the scheme for its employees terming it inappropriate at this stage of reform process when Regional Tax Offices (RTOs) are being set up.
Sources said that the board had discussed the scheme with the WB review mission under the workforce rationalisation plan. Subsequently, the board had informed the WB that cost of the staff rationalisation scheme is nearly $185 million saving about $59 million under the head of pay and allowances.
But, this does not mean that the scheme would be launched in the coming months. Contrary to this, it would be launched at the appropriate time. Presently, rollout of RTOs is under process and it is not possible to consider the scheme under the current circumstances.
The WB had recommended that the HR department should fine-tune estimates of cost and future savings ie to include future savings stemming from lower pension costs and that it further compares the proposed staff rationalisation with programs previously undertaken by other government departments.
The WB suggested that the CBR may need to re-evaluate the compensation offered under the Early Retirement Scheme, which includes the pension and commutation amount plus a lump sum equivalent to the full salary that they would have earned until retirement.