FBR Updates Reward Policy for Inland Revenue Officers — 24-Salary Cap Continues in 2026
The Federal Board of Revenue (FBR), as a measure of administrative and taxes reforms, extended the performance-based reward system even in the year 2026. According to the new system, the officers and staff of the Inland Revenue Service are entitled to a maximum reward of 24 salaries within a financial year for their extraordinary services.
What Is the Current Position in 2026?
The reward limit, which was enhanced from 18 salaries to 24 salaries, remains applicable in 2026. This is part of FBR’s consistent focus on promoting efficiency and integrity, and improved tax enforcement results.
To formalize this, FBR had issued S.R.O. 2485(I)/2025, relating to the amendment of the Inland Revenue Reward Rules, 2021—and these amendments remain in effect for the financial year 2026, unless further amended.
Main Features of the Reward Rules
Maximum reward cap: 24 salaries per financial year
✅ Applicable to Inland Revenue Officers and staff for outstanding performance
✅ Reformed performance appraisal system, including performance appraisal of ex-cadre officers/staff
✅ Offers rewards only in accordance with Rule 6 of the Inland Revenue Reward Rules
✅ The cumulative reward in a year is not to exceed the equivalent of 24 months’ salaries, regardless of how many cases qualify
This helps ensure that rewards are performance-based, yet in a moderated manner to prevent an imbalance in distribution.
No Change for Customs Officers
FBR has clarified that Customs Reward Rules, 2012 remain unchanged in 2026. Customs officers are already eligible for rewards of up to 36 months’ basic salary, so no further amendment was considered necessary.
Why this Matters in 2026
Indicative Tax Situation in the Year 2026 The Pakistani tax system is under strain to enhance revenues, widen the tax base, and control leakages. The FBR’s strategy to retain a higher reward structure aims at:
Motivate honest and performing police officers
Ensure accountability at Inland Revenue
Structure incentives with measurable performance results
Strengthen confidence in self-driven reward systems
Final Thoughts
The carryover of the 24-salary reward ceiling in 2026 shows FBR’s dedication to a result-oriented culture in Inland Revenue. Though the incentive is a very sizeable one, the cap brings in transparency, discipline, and equity. In the future also, such reward systems with clear structures are bound to play their due role in strengthening tax administration and overall compliance in Pakistan.