FBR Harshly Punishes Senior Officers After Strike Call

The Federal Board of Revenue (FBR) has imposed a 120-day suspension on two senior tax officials in response to a pen-down strike against the government's proposed restructuring plan, according to ProPakistani. The suspended personnel are Commissioner Inland Revenue Regional Tax Office (RTO) Zone-I Hyderabad and Additional Commissioner Inland Revenue RTO Sargodha.

The suspensions came into effect immediately following separate FBR notifications issued on October 19, 2026, under the Civil Servants (Efficiency and Discipline) Rules, 2020. Both officers are required to report to the FBR Member Administration and Human Resources office each day for attendance, which will be logged at 9 AM, noon, and 4 PM, with strict adherence to punctuality.

Prior to the suspension, the Inland Revenue Association had voiced strong opposition to the FBR's restructuring efforts. The association had initially announced a pen-down strike, but subsequently withdrew the call following a meeting with FBR's Member Administration and Member Operations. Prime Minister Shehbaz Sharif expressed dissatisfaction with the strike announcement.

The government is contemplating the creation of dedicated sales tax zones within the FBR's Large Taxpayer Offices and Corporate Tax Offices to enhance monitoring, enforcement, and compliance. The sales tax shortfall appears to be more significant than those for income tax and federal excise duty.

Additional proposed changes to the FBR include expanding the chairman's authority over appointments and removals and the recruitment of private sector professionals. These potential modifications may necessitate amendments to existing civil service regulations. The prime minister has also called for action against corrupt officials, stating that employees demonstrating improved conduct and performance should be granted a chance to reform. He emphasized that persistent corruption and poor performance would not be tolerated.