Islamabad: Prime Minister Shehbaz Sharif on Monday warned Federal Board of Revenue (FBR) officers against obstructing tax reforms, saying officials unwilling to comply would not be allowed to remain in their positions.
The warning came during a weekly review of tax reforms, after the Inland Revenue Officers Association called a pen down strike. The association subsequently withdrew the call after senior FBR officials intervened.
According to Dawn, the prime minister expressed displeasure over the proposed strike and questioned the officers' opposition to reforms despite salary increases and the provision of official vehicles and accommodation.
He said tax officers had received a fourfold salary increase and were expected to improve performance and revenue collection.
FBR Chairman Rashid Mahmood Langrial briefed the meeting on the National Faceless Centre (NFC), established in Islamabad to conduct tax assessments and audits without direct interaction between taxpayers and the officers handling their cases.
The system aims to limit discretionary decision making, reduce opportunities for corruption, and increase oversight in the assessment process.
The centre began operating under a pilot project on 1 October, with 27 officers assigned to examine third party financial data on approximately 300000 to 400000 individuals.
The centre will transfer the records in phases after compliance checks, allowing tax authorities to examine information from sources other than taxpayers' declarations.
Third party data is particularly relevant to Pakistan's efforts to identify undeclared income and discrepancies between reported earnings and financial activity. Such information can support tax assessments, although its effectiveness depends on the accuracy of records and the procedures used to verify discrepancies.
The faceless model also changes how the tax administration handles cases by separating assessment functions from direct taxpayer contact. Implementing it will require mechanisms to review decisions and allow taxpayers to challenge assessments.
According to the Prime Minister's Secretariat, Shehbaz directed the FBR to accelerate implementation and strengthen its institutional capacity to narrow the gap between taxes legally due and revenue actually collected.
The PM also ordered action against officials involved in corruption while allowing employees demonstrating improvements in conduct and performance to continue serving.
Meanwhile, the FBR suspended two Inland Revenue Service officers, one in BS 20 and another in BS 19, and transferred two other BS 20 officers to FBR Headquarters for investigation.
The action followed allegations involving an unauthorised press statement and a call to suspend official duties.
The dispute places the implementation of tax administration reforms alongside questions of staff accountability and institutional resistance. The pilot project's results will help determine whether the faceless assessment system can be expanded and whether it improves compliance and revenue collection.
The FBR has not yet announced the pilot project's findings or a timetable for nationwide implementation.
