Hidden Agenda? Govt Showers FBR Employees With Money and Benefits

While crisis and money issues plague the economy and inflict more pain on the poor, the Government of Pakistan has splashed some extra cash to establish an Inland Revenue Service (IRS) Common Pool Fund for Grade 17-22 officials for the Federal Board of Revenue (FBR).

In this connection, the tax regulator has issued IRS Common Pool Fund Rules, 2023 to be applicable from March 1, 2023, where it has announced lavish accommodations for Inland Revenue officers.

These perks include residential allowances of up to Rs. 300,000 per month, fuel subsidies, education for children, grants, and a welfare system where things like service charges, profit on income, and Point of Sale (POS) fees are spent for the benefit of Grade 17-22 IR officers.

Official documents available with ProPakistani reveal that collections/disbursements in the IRS Common Pool Fund will be made in/via a bank account titled ‘IRS Common Pool Fund’. Starting off, the tax regulator has decided that IRS officers posted and serving FBR shall be entitled to a Headquarter Support Allowance (HSA) at the following rates:

Basic Pay Scale Monthly Rate HSA (in rupees)
17 and 18 20,000
19 and 20 30,000
21 and 22 40,000

 

FBR has also added a house rent subsidy option. IRS officers living in a rented house, excluding officers availing the facility of government accommodation, will be paid a rent subsidy subject to a maximum amount limit.

Accordingly, officers of Grades 17-18 will be given a maximum rent subsidy of Rs. 25,000 per month, while Rs. 30,000 has been allotted for Grade 19-20 officers and Rs. 35,000 for Grade 21-22 officers.

Moreover, officers getting self-hiring facilities will receive a monthly rent subsidy as per their entitlement, stated the official documents.

Senior officers will receive rental accommodation of up to Rs. 300,000 per month. FBR says residential perks for IRS officers (Grade 17 and above) include the purchase of essential items/equipment, payment of utility bills, and salaries. There are at least four eligible categories that qualify for these subsidies:

No Expenditure Head  Maximum Ceiling of Expense (Rs.)
1 Essential items/equipment (one-time) up to Rs. 3,000,000
2 Monthly rent up to Rs. 300,000
3 Utility Bills up to Rs. 150,000
4 monthly salaries of privately hired staff up to Rs. 150,000

 

All officers of BS-17, 18, and 19 will also be paid fuel subsidy at the rate of Rs. 10,000 per month while BS-17 and 18 will get Rs. 15,000 per month. The amount may vary from time to time and may exceed if needed.

Documents further reveal that an annual scholarship for the education of one dependent child of an IRS official (up to BS-07) will be provided through the Common Pool Fund under the following breakdown:

No. Education Level Scholarship (Rs.)
1 Secondary School till Higher Secondary School 25,000 per year
2 Higher Secondary School till Graduation 30,000 per year
3 Post Graduate 50,000 per year

 

All scholarships as mentioned above will be awarded on merit.

Through the IRS fund, one-time financial assistance of up to Rs. 7.5 million will be provided to widows and children or parents (for unmarried officers).

For the staff of up to BS-07, an amount of Rs. 100,000 will be provided as a subsidy on marriage expenditure for one child, another Rs. 100,000 for burial expenses, a one-time Rs. 100,000 payouts to the widow of an officer who dies during service, and health insurance for all cadre and non-cadre employees and their families.

Lastly, a Secretariat will be established at FBR headquarter to oversee the IRS fund. All expenditures related to its running, including annual audit fees and monthly allowance will be taken from the Fund. Moreover, the monthly allowance for the Secretariat’s officers will be disbursed as follows:

Designation Monthly Allowance
Chief IRS Common Pool Fund (BS-20) Rs. 20,000
Secondary Secretary (BS-17,18) Rs. 15,000
Staff Rs. 8,000

Besides the surprising free cash at the tax regulator’s disposal, it should be mentioned that the heads of expenditures can be added or deleted depending on the flow of funds in the CPF with the approval of the IRS-CPF fund hoard

The meeting of the IRS-CPF Board shall be convened at least once a month. These rules are subject to amendment from time to time with the approval of the competent authority.



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