KARACHI: The Inland Revenue Service Officers Association (IRSOA) has lauded the Federal Board of Revenue (FBR) for achieving remarkable tax collection results in the fiscal year 2023-24.
In a statement released on Sunday evening, IRSOA extended heartfelt congratulations to the entire FBR family for surpassing revenue collection targets despite significant challenges.
The IRSOA highlighted the resilience and dedication of the FBR, describing it as the country’s primary financial support system. This year, FBR exceeded the annual target of Rs. 9.252 trillion by an additional Rs. 54 billion, achieving a total collection of Rs. 9.306 trillion. This accomplishment is particularly noteworthy given the economic disturbances and severe resource constraints faced during the period.
IRSOA emphasized the undercompensated nature of FBR employees, noting that they are among the lowest paid within the civil service groups. Despite earning far below living wages, these employees are tasked with collecting revenue in the trillions. The association pointed out that international best practices suggest tax authority expenditures range from 1.5% to 2.5% of the revenue achieved. In stark contrast, FBR’s expenditure stands at a mere 0.43%.
The statement also underscored the disparity in human resources (HR) and infrastructure between FBR and tax authorities in more digitized nations. For example, while countries like the UK and Japan employ HR ranging from 40,000 to 50,000, FBR operates with significantly fewer personnel. Moreover, Pakistan, with a population of 240 million, has only 110 FBR tax offices. In comparison, Tokyo alone has 100 tax offices, and Japan has a total of 550.
Despite these constraints, FBR has set an ambitious target of Rs. 12.9 trillion for the next fiscal year, 2024-25. The IRSOA stressed the importance of addressing the challenges faced by FBR to further strengthen the institution and enable it to continue making historical achievements.
IRSOA’s congratulatory message reflects the appreciation and recognition of FBR’s efforts and accomplishments. The association’s call for better resources and support for FBR highlights the need for systemic improvements to sustain and enhance the country’s revenue collection capabilities. As Pakistan navigates its economic challenges, the success of FBR will play a crucial role in stabilizing and advancing the national economy.