Government empowers FBR with access to bank account holders’ data

Pakistani government is convinced to grant Federal Board of Revenue (FBR) access to bank account holders' data from the central bank, and laws will be amended accordingly.

This was disclosed by FBR Chief Rashid Langrial during a briefing on the 'FBR Transformation Plan', which received approval from the Prime Minister earlier on Friday.

According to details, government plans significant legal amendments to enhance the powers of the tax department. The Central Bank will share bank account details with the FBR on a case-by-case basis upon request.

Chairman Langrial explained that non-filers will be targeted by the FBR, with measures being taken to expand the tax net. A 'Model Tax Office' will be established in Karachi, staffed by efficient and high-integrity officers.

During the meeting, it was disclosed that the average basic pay for grade 17 officers is PKR 74,000, grade 18 is PKR 95,220, grade 19 is PKR 142,200, grade 20 is PKR 176,060, and grade 21 is PKR 217,670. The minimum quarterly incentive for grade 17 officers is PKR 111,000, with a maximum of PKR 1.2 million. For grade 21 officers, the minimum quarterly incentive is PKR 326,505, with a maximum of PKR 2.28 million.

Additionally, officers receive quarterly incentives, and the chairman has secured approval from the Prime Minister for additional bonuses based on performance metrics.

The FBR will also establish digital enforcement stations to combat smuggling, and working groups have been formed to reform Pakistan Customs. A command fund will be created, allocating 20% of auction proceeds, with 50% going to collectorate staff and the remaining 50% for organizational capacity building.

Earlier today, the Prime Minister chaired a meeting to review FBR matters, where it was revealed that the tax regulator had developed a home-grown "transformative plan" to enhance its services. The plan includes effective use of technology, rewarding efficient officers, and improving tax law enforcement. Formulated over the past 40 days by FBR officers and experts, the plan aims to ensure tax collection without hindering economic development and to support honest taxpayers.

In the first phase, efficient and competent officers will be posted in Karachi, which contributes 32% of tax receipts, supported by auditors and experts. The plan also mandates a professional degree from top universities for officers after their training programs.

The Prime Minister directed third-party audits of FBR projects and expedited efforts to curb smuggling. To prevent customs duty theft, an appraisal and enforcement mechanism will assign tasks to appraisers and inspectors without prior knowledge, monitored through cameras.