Islamabad, September 21, 2024 – The Inland Revenue Service Officers Association (IRSOA) has voiced strong opposition to the Federal Board of Revenue’s (FBR) new transformation plan, expressing grave concerns over its content and execution.
The IRSOA, which represents over 1,300 officers instrumental in collecting more than Rs. 9 trillion annually, criticized the plan on several fronts, claiming it was not developed in consultation with the officers and raised serious concerns about transparency and fair treatment within the department.
Non-Indigenous Plan Lacking Consultation
A key criticism from the IRSOA is that the transformation plan was not an internally generated initiative by the FBR. Despite media reports suggesting otherwise, the association clarified that a task force of IRS officers was hastily assembled to analyze data and identify tax gaps, without any role in formulating the plan’s recommendations or proposals. This lack of internal input has resulted in widespread dissatisfaction among officers.
Adding to this frustration is the alleged absence of dialogue between the IRSOA and the newly appointed FBR Chairman. The association highlighted that repeated requests for meetings, including formal submissions, were ignored. The lack of consultation has exacerbated feelings of alienation among the officers who feel their concerns are being sidelined.
Unfair Treatment of IRS Officers
The IRSOA strongly criticized what it perceives as discriminatory practices within the transformation plan, particularly the implementation of the 60/40 peer rating system for performance assessments. Officers argue that this system is demoralizing and unfair, especially when compared to other civil service groups. Instead of subjective peer evaluations, the IRSOA proposed that performance assessments be based on objective measures such as new taxpayer registrations, recovery performance, and audit outcomes.
The association also expressed concern over limited career advancement opportunities for IRS officers, including exclusion from key positions within the FBR hierarchy, foreign training opportunities, and other privileges. This has left many officers feeling undervalued, adding to the demotivation of an already overstretched workforce.
Resource Deficiencies and Work Culture
Despite their commitment and efficiency, IRS officers face significant challenges in terms of resource constraints and an unproductive work culture. Officers are reportedly burdened with excessive reporting requirements to senior officials, preventing them from focusing on core responsibilities. The transformation plan, according to IRSOA, fails to address basic needs such as adequate salaries, transportation, and accommodation for junior officers. Without providing essential resources, IRSOA argues, the transformation plan is destined to fail.
The association also highlighted concerns over disparities in how integrity issues are addressed within the FBR, noting that IRS officers often face harsher scrutiny compared to their counterparts in the Pakistan Customs Service (PCS). These discrepancies, combined with inadequate logistical support, have further strained field units, leaving officers to cover their operational expenses out of pocket.
Specific Demands and Concerns
The IRSOA has issued a set of specific demands to address these concerns. These include aligning salaries and allowances for IRS officers with those of other service groups, providing logistical support for field enforcement activities, ensuring necessary staff and amenities for field formations, and devolving authority to empower officers in the field. The association also stressed the need for prioritizing career progression and international training opportunities to enhance the skills and experience of IRS officers.
Transformation and Accountability
The plan’s approach to accountability has also drawn criticism. The IRSOA strongly opposes the hiring of external auditors from the private sector, citing concerns over accountability and potential data leaks. Instead, the association advocates for recruiting auditors from within the organization to ensure accountability and prevent scandals like those involving Pakistan Revenue Automation Limited (PRAL) in the past.
By outsourcing audits to private firms, IRSOA warns that the FBR risks repeating past mistakes, which could lead to corruption scandals. Should this occur, the IRSOA places the responsibility squarely on the FBR Chairman, who, despite lacking prior experience within the organization, has presided over significant losses in recent months.
Digital Strategy and Unit Empowerment
IRSOA also emphasized the importance of aligning FBR’s digital strategy with its objectives, particularly in enhancing taxpayer experience and operational efficiency. Improved data analytics and intelligence sharing, they argue, are critical for increasing tax revenue. However, the transformation plan fails to institutionalize access to vital data and decentralize it to relevant stakeholders.
Furthermore, the lack of empowerment for field units is cited as a major shortcoming of the plan. IRS officers are overburdened with unproductive tasks and are not provided with the necessary support to perform their duties effectively. The association called for a redesign of job descriptions and performance evaluations that focus on clear, relevant metrics.
Conclusion: Missed Opportunity
In closing, the IRSOA expressed disappointment over the presentation of the transformation plan, which included imagery they deemed inappropriate and demoralizing, particularly the depiction of the FBR as a snake. This, they said, reflected poorly on how the organization is viewed and represented by its leadership.
While the IRSOA remains committed to the goal of effective tax collection, they urge the FBR leadership to address these serious concerns. Without the necessary resources, transparency, and empowerment, the transformation plan is unlikely to achieve its desired objectives. The IRSOA warns that at a time of economic crisis, the country is missing a golden opportunity to transform itself into a self-reliant state.
