PTBP Web Desk
The Establishment Division has taken a strong stance against the Federal Board of Revenue (FBR) in Pakistan, urging its Chairman to take immediate action against irregularities, corrupt practices, and inefficiencies within the organization.
These issues have been flagged as significant deterrents to foreign investment in the country. The matter came to light following a report submitted to the Establishment Division by Khurram Shahzad Butt, which exposed the fraudulent activities and misuse of assessment powers by certain members within the FBR, particularly in the Corporate Tax Office (CTO) Islamabad.
In a decisive move earlier, Prime Minister Shehbaz Sharif removed 25 officers from the FBR. These officers were in higher pay grades of 21 and 22, including top-tier board members and chief commissioners. The decision was based on the inputs from three intelligence agencies that raised concerns about their financial integrity and competence. This mass removal highlights the government’s commitment to addressing the deep-rooted issues within the tax administration system.
Taxpayers in Pakistan have expressed their distress over these practices, stating that the unchecked corruption within the FBR has led to significant hardship and inconvenience. This misconduct not only impacts local taxpayers but also poses a substantial threat to foreign investment. The illegal activities by some FBR officials have raised concerns about the overall integrity of Pakistan’s taxation system, making it less appealing to international investors.
The Final Fact-Finding Authority within the fiscal hierarchy has documented specific instances of incompetence, inefficiency, and corrupt practices. These findings point to blatant administrative lapses, inefficient procedures, and arbitrary decisions that have adversely affected taxpayers. Such practices have damaged the reputation of Pakistan’s taxation system, making it difficult to justify reopening closed transactions or issues that have attained finality. Legal experts have noted that actions taken under section 170 are not only patently illegal but also contrary to established laws.
Interestingly, some respondents within the FBR have refused to acknowledge the undeniable truth of these allegations. Their unwillingness to accept responsibility for these actions undermines the integrity of Pakistan’s tax administration system, particularly in the eyes of foreign investors who seek transparency and accountability in the countries they invest in.
The Establishment Division’s involvement in this matter underscores the importance of accountability in strengthening institutions rather than weakening them. The financial losses caused by these corrupt practices have eroded public trust in the FBR and have far-reaching implications for the overall economic well-being of the nation. Taxpayers argue that the continued presence of corrupt elements within the FBR seriously undermines the credibility and integrity of Pakistan’s taxation system.
In a recent development, the Establishment Division issued a letter to the FBR, stating, “I am directed to enclose herewith a copy of self-explanatory complaint received on the subject cited above, along with its enclosures, against Ishrat Mujahid and Osama Idress (CTO Officers) for further necessary action, as per Rules/Policy.” This directive highlights the government’s resolve to address the issue head-on, ensuring that appropriate measures are taken to root out corruption within the FBR.
The government’s actions against the corrupt elements in the FBR reflect a broader effort to improve the business environment in Pakistan and restore confidence among foreign investors. By holding individuals accountable for their actions, the Establishment Division aims to strengthen the country’s taxation system and create a more transparent and efficient environment for both domestic and international investors.
Foreign investment is crucial for Pakistan’s economic growth, and a clean, transparent tax system is essential for attracting such investment. The ongoing efforts to cleanse the FBR of corruption and inefficiency are steps in the right direction, aiming to create a system that is fair, efficient, and welcoming to foreign investors.
