FBR Sets ADRC Payments at Up to Rs500,000

The Federal Board of Revenue (FBR) has introduced a revised remuneration structure for chairpersons and members of Alternative Dispute Resolution Committees (ADRCs) established to settle tax disputes, setting payments at up to Rs500,000 for chairpersons and Rs250,000 for individual members.

Under the revised rules announced on Friday, chairpersons will receive Rs300,000, while each committee member will be paid Rs150,000 in disputes involving tax liabilities of up to Rs50 million.

Where the disputed tax amount exceeds Rs50 million, the chairperson's remuneration will rise to Rs500,000, with each member entitled to Rs250,000.

However, Inland Revenue officers serving at BS-21 or higher who are appointed to these committees will not qualify for the prescribed payments.

According to SRO 1927(I)/2026, the amended Rule 231C will cover all disputes referred or specified for resolution under Section 134A of the Income Tax Ordinance, 2001. Under the rules, an aggrieved person is defined as an individual who has submitted a dispute for resolution under the relevant provision, while a committee means one established under Section 134A(3).

The FBR has additionally laid down provisions for travel and daily allowances payable to committee members.

Chairpersons may claim travel and daily allowances at rates equivalent to those available to federal government officers in BPS-22, whereas members will be eligible for allowances corresponding to BPS-21 officers.

The amended procedure requires anyone seeking resolution of a tax dispute to file a written application with the FBR using the prescribed form included in Part I of the Schedule to Rule 231C.

Applicants must also submit the documents stipulated under Section 134A(2) and nominate a person in accordance with Section 134A(3)(c).

The nomination must be accompanied by a copy of the nominated individual's Computerised National Identity Card (CNIC), telephone number, permanent residential address and email address.