Govt Calls for Action Against Corrupt FBR Officers Discouraging Foreign Investment

The Establishment Division has directed the Chairman Federal Board of Revenue (FBR) to take action against irregularity, corrupt practices and inefficient elements present in the FBR responsible for discouraging Foreign Investment through Fraud on Statue. It is reliably learnt that on the basis of a write-up before the Establishment Division by Khurram Shahzad Butt against corrupt practices in FBR to discourage foreign investment through Fraud on Statue and misuse of assessment powers, Establishment Division has referred a serious matter pertaining to corrupt practices by some Corporate Tax Office Islamabad tax employees. Earlier Prime Minister Shehbaz Sharif removed from the FBR 25 officers, who were in higher pay grades of 21 and 22, on the basis of the input from three intelligence agencies about their financial integrity and competence. Among those who have been ousted included the top tier members of the board, and chief commissioners. The taxpayer stated, “These planned actions have resulted in significant hardship and inconvenience for taxpayers of Pakistan which may discourage foreign investment due to extreme unchecked corrupt practices in FBR-Pakistan. Final Fact Finding Authority in the hierarchy of fiscal statutes has recorded some specific instances of incompetence, inefficiency and proved corrupt practices, wherein stricture has been passed to bluntly highlight administrative lapses, inefficient procedures, and arbitrary malafide decisions that have negatively impacted taxpayers of Pakistan and create a bad name for Pakistan’s taxation system”. No legal and moral justification exists to reopen the issue which has attained finality and is a past and closed transaction for all purposes.  Action taken u/s 170 is patently illegal, contrary to law. Interestingly, the taxpayer added that the respondents refused to acknowledge the undeniable truth. These actions by the FBR are not only illegal but also undermine the integrity of Pakistan’s taxation system, particularly in the eyes of foreign investors. Accountability strengthens institutions rather than weakens them. These lapses have not only caused financial losses to the taxpayers but have also eroded public trust in the tax administration system of Pakistan. Such behavior is detrimental to the overall economic well-being of the Nation. Their continued presence in FBR undermines the credibility and integrity of the taxation system of Pakistan, thee taxpayer added. “I am directed to enclose herewith a copy of self-explanatory complaint received on the subject cited above, along with its enclusures, against Madam Ishrat Mujahid & Mr. Osama Idress (CTO Officers) for further necessary action, as per Rules/Policy,” Establishment Division added.