ISLAMABAD: Prime Minister Shehbaz Sharif has warned Federal Board of Revenue (FBR) officers that resistance to ongoing reforms will not be tolerated, directing the tax authority to accelerate measures aimed at reducing Pakistan’s tax gap.
Sharif issued the warning during a weekly briefing on tax reforms after the Inland Revenue Officers Association called for a pen-down strike. The strike call was later withdrawn following intervention by senior FBR officials.
“We will not tolerate any resistance against the ongoing reforms in the FBR,” the prime minister said, according to a source familiar with the meeting. “Officers unwilling to work will be asked to leave.”
Incentives and Accountability
Sharif reminded tax officers that their salaries had been increased fourfold and that they had received vehicles and accommodation. He said they were now responsible for delivering results and justifying the incentives provided to them.
The prime minister directed FBR Chairman Rashid Mahmood Langrial to accelerate the rollout of the faceless tax-collection system, which aims to reduce direct interaction between tax officials and taxpayers.
He said the reforms served the broader interests of the state and would continue “under all circumstances.”
Sharif also called for action against corrupt officials without discrimination. However, he said officers willing to improve their conduct and performance should be given an opportunity to reform.
Faceless Assessment Pilot Begins
The FBR has established the National Faceless Centre in Islamabad to conduct audits and tax assessments without direct contact between officials and taxpayers. The system is intended to reduce official discretion and improve transparency in tax administration.
Initially staffed by 27 officers, the centre will examine third-party data relating to between 300,000 and 400,000 individuals under a pilot project that took effect on October 1.
The data will be referred to the centre in phases after initial compliance checks.
The Prime Minister’s Secretariat said Sharif had directed authorities to accelerate the pace of FBR reforms, adding that early results were encouraging. He stressed the need to strengthen the institution’s capacity to narrow the tax gap.
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FBR Suspends Officers
Separately, the FBR suspended two Inland Revenue Service officers, one in grade 20 and the other in grade 19. It also repatriated two additional grade-20 officers to FBR headquarters for further investigation.
The action followed an unauthorised press statement and a call to suspend official work, according to the report.
The developments come as the government seeks to advance tax administration reforms, improve compliance and broaden revenue collection. The implementation of the faceless system and accountability measures will be central to the FBR’s efforts to reduce the gap between taxes due and revenue collected.
