ISLAMABAD, Oct 23: The International Monetary Fund (IMF) has rejected the federal government’s move to give exorbitant raise in the salary structure of the tax administration, reliable sources told Dawn here on Tuesday.

The government had constituted a task force on Reform of Tax Administration, which proposed that in order to reduce the culture of existing corruption in the tax-machinery, the salary package of the employees would be brought at par with private institutions.

But, the International Monetary Fund (IMF) in its report said that it was highly unreasonable to give special treatment to the taxmen.

The Fund observed that if the government gives raise in salary to the tax employees, it would encourage the employees of other federal departments, and they would claim for the same increase in their salaries, which would not be affordable for the government.

The Fund said the government had already announced a new salary package for all the employees, which would come into force from December. Therefore, there was no need for special treatment to be meted out to the tax-employees.

Instead of raising the salary package, Fund proposed to the government to give special allowances, bonuses, efficiency and performance rewards to the outstanding employees.

It was also pointed out that special treatment should be given in the shape of house rents and other facilities.

The task force in its report recommended a fully monetised compensation system for the re-designed tax administration, which can attract new employees, motivate and retain good performers and reduce corruption.