The newly implemented Reward & Rating System (RRS) by the Federal Board of Revenue (FBR) has sparked significant controversy, with officers from both Pakistan Customs and the Inland Revenue Services (IRS) raising concerns over what they view as a flawed and discriminatory system, Business Recorder reported.
Introduced as a replacement for the Performance Evaluation Report (PER) system, the RRS has faced backlash for allegedly favoring select officers while sidelining others based on peer assessments.
Internal criticism has intensified as some officers have declined financial rewards granted under the new system, citing its lack of transparency and fairness.
As per the report, one customs officer rejected a Category “B” award—equivalent to three additional salaries—because being placed in this category implied inefficiency and compromised integrity, which the officer strongly rejected.
The controversy grew when a Supreme Court advocate filed a formal complaint, questioning the legality of the reward system and accusing it of misusing taxpayer money.
According to the complaint, the reward structure grants significant financial rewards based on peer ratings, with Grade “A” officers reportedly receiving up to 24 salaries for the evaluation period, while lower-ranking officers receive fewer salaries or no reward at all.
The complaint highlighted a specific case where a Chief Collector of Customs in Peshawar allegedly received Rs 4.7 million in addition to his regular salary.
The critics argue that the system’s reliance on peer evaluations, where officers rate one another, undermines objectivity and allows personal biases to influence the ratings. They also point to the role of the “anomaly committee,” which some believe interferes with fairness by manually adjusting ratings. In light of these concerns, some insiders have called for an independent audit to ensure that the system operates impartially.
According to the report, legal challenges to the RRS have also been raised, with the complaint questioning whether the FBR had the authority to implement the system without approval from the policy board, as required by Section 20 of the FBR Act.
