IR, Customs officers: FTO’s key recommendation remains unimplemented

ISLAMABAD: A key recommendation issued by the Federal Tax Ombudsman (FTO) against Inland Revenue and Customs officers has reportedly remained unimplemented, raising serious concerns over institutional apathy towards curbing large-scale tax evasion and organized sale of non-custom paid (NCP) goods through digital accounts.

The matter arises out of FTO C. No. 1763 titled Waheed Shahzad Butt vs. Secretary, Revenue Division, wherein the FTO took serious notice of allegations that private gangs are openly involved in the sale of NCP products across Pakistan with the alleged connivance and facilitation of certain Customs and (IRS) officials. The FTO observed that such activities have caused massive losses to the national exchequer and severely undermined the integrity of the taxation system.

FTO had the Federal Board of Revenue (FBR) to initiate disciplinary proceedings against officers who failed to submit comments and effectively respond to the complaint, terming such conduct as gross negligence and maladministration. FTO further ordered the Directorates of (I&I), Customs and I&I, IRS to conduct a comprehensive investigation into the allegations, identify responsible officials, and fix responsibility in accordance with law.

Notably, acting on a public interest complaint filed by Shahzad Butt, the FTO also directed the Chairman FBR to conduct an in-depth investigation with the assistance of the (FIA) and other relevant agencies, and to submit a detailed report on the findings. Despite the clarity and gravity of these directions, no visible progress has been reported, prompting serious questions about FBR’s commitment to enforcing the rule of law.

Copyright Business Recorder, 2025