Karachi, November 23, 2023 – The Federal Board of Revenue (FBR) has announced the granting of travel allowances to tax officials deployed at business premises of taxpayers for the purpose of monitoring transactions.
This decision comes as part of the FBR’s ongoing efforts to enhance oversight and compliance with tax regulations.
According to an official note released on Thursday, the FBR clarified its stance on the admissibility of Travel Allowance (TA) and Daily Allowance (D.A) for officers and staff of Inland Revenue Field Formations during their posting under Section 40B of the Sales Tax Act, 1990. The examination of this matter was conducted in collaboration with the Finance Division (Regulations Wing) in response to directives from the Secretariat of the Federal Ombudsman.
The key outcome of this examination is the determination that Daily Allowance (D.A) will not be sanctioned to officers and staff of Inland Revenue Field Formations during the period of their posting under Section 40-B of the Sales Tax Act, 1990. Instead, these officials will be entitled to Travelling Allowance (TA) once for departure and once upon their return from the designated posting.
This decision marks a nuanced approach to the financial aspects of monitoring duties, aligning the FBR’s policies with the evolving needs and challenges faced by tax officials in the field. The move reflects a balance between the requirement for fiscal responsibility and the practical considerations of officials engaged in on-site monitoring.
The official directive emphasizes that all Heads of Inland Revenue Field Formations are obligated to ensure strict compliance with these instructions, both in letter and spirit. This implies a need for thorough adherence to the prescribed guidelines to streamline the process of granting travel allowances while ensuring that it serves the intended purpose of enhancing tax monitoring activities.
The FBR’s decision comes at a time when the government is actively working towards reinforcing tax collection mechanisms and ensuring transparency in financial transactions. By addressing the matter of travel allowances, the FBR aims to facilitate tax officials in effectively discharging their duties while maintaining financial prudence.
This development is likely to have an impact on the operational dynamics within Inland Revenue Field Formations, as officials will now have a clearer understanding of the allowances available to them during the course of their monitoring assignments. The move is expected to streamline administrative processes and contribute to the overall efficiency of tax monitoring initiatives.
The FBR’s decision to grant travel allowances to tax officials involved in monitoring activities reflects a strategic response to the evolving needs of tax administration. The nuanced approach seeks to strike a balance between financial responsibility and the operational requirements of officials engaged in crucial monitoring functions, ultimately contributing to the broader goals of enhancing tax compliance and transparency.
