Additional structural reforms being considered within FBR: IRSOA

KARACHI: The Inland Revenue Service Officers Association (IRSOA) has expressed serious concern over reports that further structural reforms are being considered within the Federal Board of Revenue (FBR), saying several major reform initiatives are still being implemented.

The IRSOA said it fully supports meaningful reform but argued that institutional changes must rest on objective evaluation, operational realities and the national interest.

The IRSOA pointed to a number of initiatives that remain at various stages of rollout, including digital invoicing, Point-of-Sale (POS) integration, Compliance Risk Management (CRM), production monitoring and the Faceless Inland Revenue System. It said these programmes need sufficient time to mature and show measurable results before any new structural changes are introduced.

“Reform must be a continuous process of institutional strengthening, not a cycle of repeated experimentation,” it said.

It warned that frequent restructuring without first assessing existing initiatives could create administrative uncertainty, disrupt institutional continuity, weaken operational capacity and harm revenue collection.

It recalled that the 2009 integration of income tax, sales tax and federal excise under Inland Revenue was meant to ensure coordinated tax administration, efficient use of resources and better taxpayer facilitation.

It noted that Pakistan’s tax landscape remains fragmented, with businesses dealing with multiple federal, provincial and local authorities, each with its own compliance requirements, reporting obligations and enforcement mechanisms.

This, it said, raises compliance costs, adds administrative complexity and hampers the ease of doing business.

The IRSOA said the long-term goal should be a seamless national tax administration framework with harmonised procedures, integrated information systems and coordinated enforcement across all taxes and jurisdictions.

Reform, it argued, should move toward greater institutional coherence and integration rather than adding new layers of administrative complexity.

It also stressed the need for meaningful consultation with the officers who implement reforms, saying sustainable change depends on institutional confidence, operational continuity and the participation of those entrusted with carrying it out.

“Revenue administration is not merely a function of government; it is fundamental to the capacity, stability, and continuity of the state,” it said, adding that its position is driven by the aim of safeguarding national revenue and strengthening institutional effectiveness.

The IRSOA urged the government and FBR leadership to prioritise consolidating ongoing reforms, commission an independent evaluation of their outcomes, and consult relevant stakeholders before contemplating any further structural changes.

It said that Pakistan’s revenue system needs institutional stability, continuity and a coherent long-term vision built on greater coordination and integration, with consolidation rather than repeated restructuring.

Copyright Business Recorder, 2026