The Federal Board of Revenue (FBR) has suspended two senior tax officers for 120 days amid opposition to the government’s proposed restructuring plan, according to high-level documents seen by RBN.
The suspended officials are Naib Ali Pathan, Commissioner Inland Revenue at Regional Tax Office (RTO) Zone-I Hyderabad, and Ali Saleh Hayat Kalyar, Additional Commissioner Inland Revenue at RTO Sargodha. Two FBR notifications issued on October 19 confirm that both officers have been suspended with immediate effect under the Civil Servants (Efficiency and Discipline) Rules, 2020.
During their suspension, both officers must report to the office of the FBR Member Administration and Human Resources every working day. Their attendance will be marked at 9 am, noon, and 4 pm, and they must submit daily records of their activities.
The move comes after the Inland Revenue Association called a pen-down strike to oppose the proposed restructuring of the tax authority. The association later withdrew the strike call following talks with the FBR’s Member Administration and Member Operations.
Sources said Prime Minister Shehbaz Sharif had expressed displeasure over the strike announcement. The government is continuing with plans to overhaul the FBR to improve tax collection, reduce revenue losses, and strengthen the department’s performance.
Under the proposed reforms, the government is considering setting up dedicated sales tax zones within the FBR’s Large Taxpayer Offices and Corporate Tax Offices. The move aims to improve tax monitoring, enforcement, and compliance amid concerns over the country’s sales tax gap.
Officials are also considering giving the FBR chairman greater powers over appointments and removals, as well as allowing the recruitment of professionals from the private sector. Some of these changes may require amendments to civil service rules.
The Prime Minister’s Office is expected to form a committee to review the proposals and decide the next steps, according to sources.
Separately, Shehbaz chaired a weekly meeting on FBR affairs on Monday and directed officials to speed up reforms, improve accountability, and expand the use of technology, including faceless tax collection systems.
The prime minister said officials who improve their conduct and performance should be given an opportunity to reform, while continued corruption and persistently poor performance would not be tolerated.
During the meeting, officials reported that Pakistan’s estimated tax gap had fallen from 6 percent to 5 percent of gross domestic product over the past three years. The FBR also said the hiring of 957 third-party auditors had increased its audit capacity fourfold.
The briefing also covered staff training, technology upgrades, performance assessments, and the recruitment of specialized technical personnel.
