March 23, 2003	Sunday	Muharram 19, 1424

ISLAMABAD, March 22: The International Monetary Fund (IMF) has proposed to the Central Board of Revenue (CBR) to hire experts at market rates in highly specialized positions to improve the competency of the tax administration.

Official sources told Dawn that the Fund had allowed the CBR to hire experts from the private sector until such competency is developed by the CBR.

In this connection the CBR has already hired five members from the private sectors at market rates, who were entrusted with the task of re-structuring the tax administration.

The IMF also recommended to the CBR to implement the medium term remuneration strategy by June 2003, which would include extending of 100 per cent over base salary concept to core employees in the Central Board of Revenue.

It would include departmental representatives from direct and indirect taxes, departmental appellate positions, training directorates at all locations and core positions in field formations.

The Fund recommended to the CBR to develop an incentive-based remuneration system based on realistic market indicators to meet “living wage” criteria and provide further incentives for performance as a means to further meet market comparators.

It was observed that there was a need to link salary increases with the CBR and individual performance. It was proposed to provide technical support staff, who would have increased responsibilities in the new pilot units, in addition to officers in specialized functions, commensurate compensation as an incentive for team-building and as a part of the development of new career streams within the CBR.

The Fund also proposed to allocate the responsibility for training of the CBR employees to the human resource department. It should select trainers from officers at or near the top of class at the tax training institute to train staff in the new business processes as they were incrementally rolled out both in the pilot offices — LTU and MTU — and across the CBR. The CBR should provide incentives to those selected to be trained as trainers.

It was also proposed to ensure that future National Institute of Tax Administration gives priority to training needs of the CBR employees and increase accountability of line managers for appropriate training of their staff.