FBR puts hold on implementation of IRS Common Pool Fund rules

Islamabad: Federal Board of Revenue has put the implementation of IRS Common Pool Fund rules on hold.

According to the finance ministry, the Federal Minister for finance has taken notice of the implementation of IRS Common Pool Fund rules and directed the FBR to put the implementation of these Rules on hold, keeping in view the current fiscal condition and the overall economic situation in Pakistan.

The finance ministry stated that through the Finance Act 2019, Section 76 was inserted in Sales Tax Act 1990, which empowers the FBR, with the approval of the Minister In-charge, to impose levy, fee and service charges on Tier-1 retailers @ Re. 1 per invoice.

Subsequently, FBR with the approval of the then Federal Finance Minister levied a POS Service Fee of Re. 1 per invoice on Tier-1 retailers.

The purpose of the aforesaid levy was explicit and duly included the welfare of IRS employees. This was notified via SROS.R.O.1279(I)/2021 dated 30th September 2021.

IRS Common Pool Fund Rules

According to IRS Common Pool Fund rules 2023, FBR established “IRS common Pool Fund”  to all cadre and non-cadre officers and officials of the inland revenue department and they were supposed to come into force on the first day of March 2023.

In order to regulate the collections and disbursements of the IRS Common Pool Fund, an IRS Common Pool Fund Board was going to be constituted, comprising the Member Inland Revenue (Operations), member Accounting and Audit, Chief IR Revenue operations, Chief Management HRM-IR and any officer of BS-20 of IRS appointed by the board, also to act as Secretary to the IRS-CPF.

The IRS CFPB would have acted as the overall governing body of the IRS common Pool Fund and would have performed the overall supervision of the collections and disbursement of the IRS Common Pool Fund. Besides that it would also have been in charge of approving and issuing policies and procedures to regulate the activities of the IRS-CPF and the IRS-CPF secretariat.

The collection under the CPF shall not be expanded more than 90% under the heads of expenditure provided in rule 7 of these rules and the remaining 10% of the annual receipts will be invested to ensure the sustainability of the IRS common pool fund.

According to details, the officers of the IRS posted and serving in the FBR headquarter shall be entitled to an incentive called Headquarter Support Allowance (HSA).

The grade 17 &1 8 will be paid Rs20,000, grade 19 & 20 Rs30,000 and grade 21 & 22 will get Rs 40,000 HSA.

In addition to HSA, there will be a House Rent subsidy for those IRS officers who are living in a rented house or availing self-hiring facility.

Who gets what under the CFPB?

As per the details,  grade 17 & 19 shall receive Rs25000, grade 19 & 20 Rs30,000 and grade 21 & 22 shall be paid Rs35000 HRS as a difference between the monthly rent being paid by the officer.

Apart from this, at least four BS-17 and above IRS officer of FBR headquarter shall paid upto Rs 3000,000 for essential items/equipment (one time), Rs 300,000 monthly rent, Rs 150,000 per month utility bills and upto Rs150,000 monthly salaries of privately hired staff to provide a decent living to officers of IRS.

All officers of BS-17, 18 shall be paid Rs 15,000 and grade BS-19 Rs10,000 per month fuel subsidy.

Similarly, one dependent child of an IRS official upto BS-07 shall also get Rs25,000 till higher secondary school, Rs30,000 till graduation and Rs50,000 till post graduation per annual scholarship.

Meanwhile, officials from grade 1 to 22, who embrace "Shahadat", during service also get financial assistance ranging from Rs1.5 million to Rs7.5 million.