FBR revises reward rules for Inland Revenue officials

Inland Revenue Service

Islamabad, December 24, 2025 — The Federal Board of Revenue (FBR) has introduced amendments to the reward framework for Inland Revenue officials, aiming to update and rationalize incentives for meritorious and high-performing employees.

Through SRO 2485(I)/2025, the FBR has issued draft amendments to the Inland Revenue Reward Rules, 2021, proposing significant changes to Rule 6, which governs rewards for meritorious services. Under the revised proposal, the maximum reward for an Inland Revenue employee will be capped at up to 24 salaries in a single financial year.

Previously, Rule 6 stipulated that rewards for meritorious services could range between a minimum of three and a maximum of six salaries in each individual case. The proposed amendment replaces this clause, providing greater flexibility to recognize exceptional performance while setting an upper annual limit.

According to the rules, the FBR may award incentives at the close of each financial year to officers and officials in recognition of their services rendered during the year. The reward mechanism is designed to encourage efficiency, integrity, and improved tax administration.

Under the Inland Revenue Reward Rules, eligible recipients include officers and staff deputed to exercise powers, enforce laws, or perform duties in designated entities under specified statutes. In addition, informers and whistleblowers are also entitled to rewards for their role in assisting tax authorities.

The rules further outline the types of performance that qualify for rewards. These include the detection, assessment, or recovery of taxes sought to be evaded, delivery of meritorious services, and extraordinary performance that contributes significantly to revenue generation or enforcement outcomes.

The proposed amendments reflect FBR’s ongoing efforts to strengthen performance-based incentives within Inland Revenue while aligning reward structures with evolving administrative priorities. Once finalized, the revised rules are expected to play a key role in motivating officials and enhancing the effectiveness of tax enforcement.