Members of ADR bodies: FBR proposes revised remuneration structure

Business Recorder reported that the Federal Board of Revenue has put forward a new pay scale for members of alternative dispute resolution committees that handle tax disagreements. The proposal comes through a draft statutory order, SRO 1496(I)/2026, dated September 2, 2026, which seeks to replace Rule 231C of the Income Tax Rules, 2002. Stakeholders have seven days to send their objections or suggestions on the draft.

Under the proposal, a chairperson would receive a one-time lump sum of Rs300,000 when the disputed tax amount is up to Rs50 million, with each member receiving Rs150,000 apart from the Chief Commissioner Inland Revenue. Where the disputed liability is above Rs50 million, the chairperson's payment rises to Rs500,000 and each member gets Rs250,000. Chairpersons and members may also be allowed travel and daily allowances based on entitlements for BPS-22 and BPS-21 officers respectively.

The draft also allows applications from the same taxpayer in one financial year on identical issues to be clubbed when the same chairperson is appointed and committees are formed within 90 days, with members then treated as a single committee. If a committee is dissolved for reasons outside the control of the FBR or the taxpayer, no remuneration is payable and any advance must be refunded within 15 days. Members who cannot continue because of a conflict of interest must inform the FBR in writing within seven days of the committee being constituted.