The Economic Coordination Committee (ECC) of the cabinet has approved a substantial Rs32.5 billion package aimed at improving the efficiency of the Federal Board of Revenue (FBR). This six-month initiative includes the provision of nearly 1,100 new cars, additional salaries, and the establishment of ex-military-led Customs posts to combat smuggling.
The package, which could be extended and increased in the next fiscal year if targets are met, allocates Rs5.6 billion for the purchase of 1,087 new 1,300cc cars. These vehicles will be provided to grade-17 and 18 officers to motivate them to achieve the ambitious tax target of Rs12.97 trillion. Additionally, Rs19.7 billion is earmarked for anti-smuggling efforts, with Rs14.4 billion repurposed from the existing budget.
The ECC has also approved Rs2.5 billion for up to four additional monthly salaries for FBR employees, based on performance, and Rs3.4 billion to enhance the operational capacity of FBR officers. This includes setting up a Model Tax Office, engaging auditors through third-party payroll firms, and hiring sector-specific and legal experts.
A significant portion of the budget, Rs19.7 billion, will support anti-smuggling initiatives, including the hiring of retired military personnel and the use of artificial intelligence. This will involve establishing Digital Enforcement Stations at key Indus River crossings and strengthening Customs checkpoints in Balochistan.
The ECC has sanctioned the creation of 148 posts for retired junior commissioned officers and 1,560 retired military personnel, along with positions for MIS officers, data mining experts, and AI specialists. The performance improvement initiative will offer up to four basic salaries to top performers, with no additional incentives for the lowest performers.
To further support these efforts, a performance delivery unit will be established with a budget of Rs54 million, and a dedicated Reform Delivery Unit will be staffed with 30 officers receiving a special allowance. The ECC has also approved Rs394.1 million for the capacity building of newly inducted officers, including an MBA Tax Management program for new officers in the Inland Revenue Service.
The financial impact of these initiatives is estimated at Rs177 million for six months, with an additional Rs218 million approved for officer certification.
