ISLAMABAD: The federal cabinet has approved amendments to the Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024, along with revisions to the remuneration and transportation facilities for tribunal members, sources told Business Recorder.
On February 18, 2025, the Ministry of Law and Justice informed the cabinet that to enhance the operational efficacy, transparency, and functionality of the Income Tax Appellate Tribunal, the Legal Reforms Committee— established under the auspices of the Prime Minister— put forth a comprehensive suite of legislative and procedural reforms.
In response to these recommendations, amendments were made to Section 130 of the Income Tax Ordinance, 2001, through the Tax Laws (Amendment) Act, 2024 (V of 2024). These amendments provided a framework for the appointment of tribunal members by the federal government through prescribed rules.
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In furtherance of these legislative reforms, the Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024 were established to create a structured, transparent, and merit-based appointment process for tribunal members. The federal cabinet subsequently granted approval for these rules, which were notified through SRO 690(1)/2024.
Under Rule 4 of the Rules, vacancies in the Appellate Tribunal were duly advertised, and the National University of Sciences and Technology (NUST) was selected to conduct a skill-based test for the appointment of tribunal members. Following the test, only six candidates were short-listed for an interview by the selection committee, which was to be constituted under the aforementioned rules.
To ensure the recruitment of highly qualified candidates, A.T. Kearney Middle East Ltd., along with Sidat Hyder Management Consulting— one of Pakistan’s leading headhunting firms— was engaged to facilitate the appointment of top-tier professionals to the Appellate Tribunal Inland Revenue and to conduct a market survey on the remuneration of its members. These firms conducted a comprehensive review of the existing framework and carried out a market-based analysis of remuneration packages.
Following the review and analysis, they proposed amendments to the rules governing the appointment process and recommended revisions to the remuneration packages for both the tribunal members and the chairman.
The amendments proposed by A.T. Kearney were shared with the Attorney General of Pakistan and the Chairman of the Federal Board of Revenue for their review and input. After deliberations and consultations with relevant stakeholders, the proposed amendments were finalised.
Due to the urgency of the matter and in accordance with the directives of the Prime Minister, the proposed amendments were submitted directly to the federal cabinet, bypassing the usual routing through the Cabinet Committee for Legislative Cases (CCLC).
In view of the foregoing, the proposed amendments to the Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024 were submitted for the cabinet’s approval, in relaxation of the requirement for placement before the CCLC in the first instance.
The cabinet considered the summary, titled ‘Amendment of the Appellate Tribunal Inland Revenue (Appointments, Terms and Conditions of Service) Rules, 2024’, submitted by the Law and Justice Division, and approved the proposals with the caveat that the transport facility will be specified as “up to 1400 cc car” in view of the evolving manufacturing standards.
Copyright Business Recorder, 2025
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