The World Bank (WB) has approved $1.5 million for hiring a foreign consultancy firm for smooth implementation of the Voluntary Severance Scheme (VSS) for Federal Board of Revenue (FBR) employees.
Sources told Business Recorder on Sunday that consultancy services for the VSS would ensure proper implementation of its rules and procedures. The firm is likely to deal with HR-related issues involved in the golden handshake scheme. A foreign firm would ensure reduction in complexity of routine processes for VSS implementation. The firm would also review the existing scheme for obtaining impartial feedback of tax employees on this issue and work independently to launch a fair scheme with minimum involvement of government officials.
It is important to mention that government departments, like Pakistan Telecommunication Company Limited (PTCL), had also hired services of foreign consultants before launching golden handshake schemes. It would be more appropriate to learn from the experience of PTCL and banks for launching of an effective scheme offering 'sufficient financial incentives' for the tax officers at appropriate timing.
Moreover, the FBR Legal Wing would also submit an analysis of the proposed scheme this month. The legal aspects have been examined keeping in view FBR workforce rationalisation plan under the reform process.
Sources said 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. Secondly, the current economic and political situation seemed to be inappropriate to launch the scheme.
The board had informed the WB that the cost of staff rationalisation scheme is nearly $185 million, saving about $59 million under the head of pay and allowances.
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 board may launch the VSS after obtaining the direct feedback of FBR employees, which would reflect the mindset of tax machinery on these issues.
The board had finalised a lucrative 'voluntary severance scheme' for employees, including senior tax officials and staff. The tax officials, who want to voluntarily leave the organisation, are expecting some extraordinary attractive package.