Mohsin Siddiqui (Chief Reporter)

In a shocking turn of events, a heated altercation broke out between officers from the Federal Board of Revenue’s (FBR) two field formations in Lahore regarding the distribution of “speed money” linked to a substantial sales tax refund. The dispute, which escalated to an armed confrontation, has brought to light the rampant corruption within the department.
The dispute centers around a significant sales tax refund amounting to Rs. 360 million granted to DWP Engineering for Gree air conditioners. This refund, processed by the officers of the Large Taxpayer Office (LTO) in Lahore, led to the collection of Rs. 82 million as speed money. However, the distribution of this illicit payment became a bone of contention between officers of the Regional Tax Office (RTO) Lahore and LTO Lahore.
According to insider reports, the speed money was allocated as follows:
• Rs. 15 million to a member and the Chairman of FBR.
• Rs. 11 million to the Chief of LTO.
• Rs. 11 million to a commissioner and a lawyer.
• The remaining amount was retained by the Chief of RTO and the Headquarters.
Despite the large sums distributed among senior officials, the lower staff felt aggrieved as they did not receive their expected share of the Rs. 82 million.
The tension reached a boiling point last week when groups of officers from LTO Lahore and RTO Lahore clashed violently. The confrontation, involving firearms, occurred in the office of the Chief of LTO. Commissioner Rana Waqar from LTO and Deputy Commissioner Khurram Fakher from the RTO headquarters were at the forefront of the altercation, which took place in the presence of senior officials from both LTO and RTO headquarters.
The crux of the issue lies in the greed and corruption that plague the system. While senior officers secured significant portions of the speed money, the lower-ranking staff, who played a crucial role in processing the refund, were left disgruntled over their exclusion from the hefty payouts. This dissatisfaction among the lower staff members has been simmering for a while and finally erupted into the violent clash.
In response to the scandal and the ensuing violence, the FBR has taken swift action to transfer the concerned officers in an effort to suppress the matter and restore some semblance of order. However, these transfers are seen as a temporary fix to a deeper issue of systemic corruption within the organization.
This incident is not an isolated case but rather a symptom of the broader malaise affecting the FBR. The prevalence of speed money and corrupt practices highlights the need for a thorough overhaul of the system to ensure transparency and accountability. The public’s trust in the FBR is significantly eroded by such incidents, calling for stringent measures to combat corruption at all levels.
To address the root causes of such conflicts, the FBR must implement comprehensive reforms. These should include stricter internal controls, transparent processes for handling tax refunds, and a robust whistleblower protection system to encourage reporting of corrupt practices without fear of retribution.
Moreover, there needs to be an equitable distribution of legitimate incentives to all staff members involved in processing refunds, ensuring that lower-ranking employees do not feel marginalized or unfairly treated.