FBR sweetens pot for its officials, offers incentives of up to Rs3m
Having claimed to have posted impressive tax collection figures for the ongoing financial year, the Federal Board of Revenue (FBR) has decided to offer its officers from basic pay scale (BPS) grades 17 to 22, incentives of up to Rs3 million in one-time expenditure for renovation of their temporary residences along with other benefits from a newly devised “Common Pool Fund (CPF)”.
These officers will receive a monthly allowance of up to Rs40,000 from the fund, which will take effect on March 1, 2023.
In addition, these FBR officers will be able to get Rs. 3 million for a one-time purchase of furniture and renovations to their temporary home. Additionally, they will receive a rent subsidy of up to Rs. 300,000 per month.
Officers will be able to afford housing in some of the country’s most exclusive areas for Rs300,000.
According to the documents, officers will receive a monthly house rent subsidy of between 25,000 and 35,000 RRs, a fuel subsidy of between 10,000 and 15,000 RRs for students in grades 17 to 19, and monthly scholarships for their children worth between 25,000 and 50,000 RRs.
Compensation ranging from Rs1.5 million to Rs7.5 million will be paid to the families of FBR employees who died while serving, from grades 1 through 22.
It is important to note that the Common Pool Funds are distinct from the subsidies for child marriage, family health insurance, and financial assistance for widows.
Historical performance In the past, the FBR asserted that its January 2023 revenue collection performance was commendable.
It claimed to have not only exceeded the monthly budgetary goal of Rs533 billion by Rs4 billion, but also to have achieved it.
Provisional data indicate that the FBR collected Rs537 billion in January 2023, a 23 percent increase from the previous year.
FBR has collected Rs3.965 trillion over the course of the first seven months of the current fiscal year, up 18% from the Rs3.367 trillion it collected during the same time period last year.
The FBR stated that it is hopeful that it will complete the annual budgetary goal of Rs7.47 trillion for the current fiscal year and meet its targets for the third quarter.
The board stated that direct tax collection has increased at a robust rate of 48% over the first seven months of the current fiscal year, demonstrating the government’s strategy of shifting tax burden to wealthy and affluent segments of society.
In addition, it is emphasized that the FBR’s administrative and enforcement measures have resulted in an increase in both special and general domestic direct taxes.
Domestic taxes increased by 40% during the same time period. Domestic taxes have also contributed more, going from 50% last year to 59% this year.
Additionally, the amount collected from Customs Duty increased by 16% in January 2023 compared to the previous year.
In addition, the FBR issued tax refunds totaling Rs208 billion in the first seven months of the current fiscal year, compared to Rs183 billion in the same time period last year. This represents a 14 percent increase over the refunds issued in the previous fiscal year.