The Establishment Division has directed the Chairman of the Federal Board of Revenue (FBR) to take action against irregularities, corrupt practices, and inefficient elements within the FBR that are responsible for discouraging foreign investment through fraudulent activities.
Sources told Raised by Numbers that based on a report submitted to the Establishment Division by Khurram Shahzad Butt regarding corrupt practices in the FBR, the Establishment Division has referred a serious matter concerning corrupt practices by some employees of the Corporate Tax Office in Islamabad.
A taxpayer stated, “These planned actions have resulted in significant hardship and inconvenience for taxpayers in Pakistan, which may discourage foreign investment due to extremely unchecked corrupt practices in FBR-Pakistan. The Final Fact Finding Authority in the hierarchy of fiscal statutes has recorded specific instances of incompetence, inefficiency, and proven corrupt practices, wherein stricture has been passed to bluntly highlight administrative lapses, inefficient procedures, and arbitrary malafide decisions that have negatively impacted taxpayers in Pakistan and created 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 under section 170 is patently illegal and contrary to law. Interestingly, the respondents refuse to acknowledge the undeniable truth.”
These actions by the FBR are illegal and 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 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.
The taxpayer added that their continued presence in the FBR undermines the credibility and integrity of Pakistan’s taxation system.
“I am directed to enclose herewith a copy of the self-explanatory complaint received on the subject cited above, along with its enclosures, against Madam Ishrat Mujahid & Mr. Osama Idrees (CTO Officers) for further necessary action, as per Rules/Policy,” the Establishment Division added.
Earlier, Prime Minister Shehbaz Sharif removed 25 officers from the FBR in higher pay grades of 21 and 22 based on input from three intelligence agencies regarding their financial integrity and competence. Among those ousted were top-tier members of the board and chief commissioners.
