by FBR to Hire Retired Army Soldiers for Tax Enforcement
In a bold move aimed at tightening tax enforcement and broadening the revenue net, the Federal Board of Revenue (FBR) of Pakistan has decided to hire retired army personnel to aid in the country’s tax collection and enforcement efforts. This new initiative, which has sparked a flurry of debate across political and economic circles, is seen as part of the government’s aggressive push to curb tax evasion and improve documentation of the economy.
Why Retired Soldiers?
Retired soldiers bring a unique mix of discipline, organizational skills, and experience in handling sensitive operations — traits that the FBR believes will help in the crackdown against tax defaulters and non-compliant individuals or businesses. According to officials, these former military personnel will not replace existing tax officers but will support enforcement drives, field audits, and intelligence gathering.
The plan includes deploying these veterans in enforcement teams, especially in areas where the FBR faces resistance or non-cooperation. They will also help ensure the safety and integrity of the tax officials conducting raids or surveys in high-risk zones.
The Background: Rising Pressure to Expand Revenue Base
Pakistan’s economy has long struggled with a narrow tax base. According to estimates, less than 2% of the population files income tax returns, and the informal sector remains largely undocumented. With mounting pressure from the International Monetary Fund (IMF) to boost revenue and reduce the fiscal deficit, the government has been compelled to take tough and unconventional measures.
The decision to involve ex-army personnel follows recent tax reforms, including digital invoicing systems, track-and-trace mechanisms, and real-time reporting requirements for businesses. However, these reforms have also seen significant pushback, particularly from retailers, wholesalers, and the real estate sector.
Operational Role of Retired Personnel
FBR sources say the ex-soldiers will serve as part of “Tax Enforcement Units” that will assist in:
- Conducting field visits to identify undocumented businesses
- Supporting the recovery of outstanding tax liabilities
- Ensuring physical security during high-risk enforcement operations
- Assisting in intelligence-led raids on suspicious business locations
- Supporting implementation of Point-of-Sale (POS) and other digital systems
The soldiers will be hired on a contractual basis and trained in tax laws and FBR operational procedures. Their deployment is expected to begin in phases, starting with major urban centers such as Karachi, Lahore, and Islamabad.
Mixed Reactions from Stakeholders
The announcement has been met with mixed reactions.
Supporters argue that this decision could improve law enforcement and compliance by creating a sense of accountability and deterrence. “Retired soldiers bring a level of integrity and efficiency that the tax machinery can greatly benefit from,” said a senior official at the Ministry of Finance.
Critics, on the other hand, view the move as militarization of civilian institutions. Tax professionals and some members of the business community have raised concerns about intimidation and potential misuse of power. “Enforcement should be legal and professional — not coercive,” noted a leading tax consultant in Karachi.
Human rights groups have also urged the FBR to ensure that due process is followed and that the rights of taxpayers are not violated under the guise of enforcement.
A Step Toward Accountability or a Slippery Slope?
While the deployment of ex-army personnel in tax matters is not entirely unprecedented — similar models have been used temporarily in the past — institutionalizing this approach marks a significant shift in Pakistan’s revenue strategy.
Whether this move proves to be a masterstroke in curbing tax evasion or adds to the perception of a growing military footprint in civilian affairs will depend on how transparently and professionally the FBR handles the initiative.
