Draft changes propose reducing reward percentages and invite public feedback within seven days.
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed draft amendments to the Inland Revenue Reward Rules, 2021, seeking to revise the reward structure for officials and other eligible persons while inviting public objections and suggestions before finalizing the changes.
The proposed amendments have been issued through S.R.O. 1226(I)/2026 under the powers conferred by Sections 227A and 227B of the Income Tax Ordinance, 2001, Sections 72C and 72D of the Sales Tax Act, 1990, Sections 42C and 42D of the Federal Excise Act, 2005, and the Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
According to the notification, the draft amendments have been published for the information of all stakeholders who may be affected by the proposed changes. The FBR has invited objections and suggestions from the public, which must be submitted within seven days of the publication of the draft in the official Gazette.
The Board stated that all comments received within the stipulated period would be taken into consideration before the amendments are finalized and notified.
The proposed amendments primarily relate to Rule 8 of the Inland Revenue Reward Rules, 2021.
Under the draft, the FBR has proposed reducing the reward percentage from 5% to 2%. In another amendment, the reference to “Rule 5” has been replaced with the broader expression “these rules”, a change aimed at making the provision applicable across the entire set of reward rules rather than limiting it to a single rule.
Additionally, the Board has proposed reducing another reward percentage from 2.5% to 1%, reflecting a significant revision in the existing incentive framework.
The Inland Revenue Reward Rules govern the mechanism for granting monetary rewards in cases involving the detection, recovery and realization of taxes under various federal tax laws. The proposed amendments are expected to streamline the reward system while ensuring consistency across different tax statutes administered by the FBR.
Stakeholders, including tax practitioners, businesses and affected individuals, have been encouraged to review the draft amendments and submit their recommendations within the prescribed seven-day period for consideration by the Board.