ISLAMABAD: The Federal Board of Revenue (FBR) has not filed its comments before the Lahore High Court (LHC) in a constitutional petition alleging distribution of public money under the FBR’s reward scheme (peer ranking system).
The LHC has issued notices to some of the most senior government functionaries, directing the Principal Secretary to the Prime Minister, Chairman FBR, Members of the FBR Policy Board, Federal Ministers, Heads of Parliamentary Finance Committees, Auditor General of Pakistan, and the DG-FIA, to submit their written replies on the allegations raised in the petition.
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The petition, filed by Advocate Waheed Shahzad Butt through International Constitutional Lawyer Muhammad Azhar Siddique, invokes Article 199 and challenges the legality, transparency, and constitutional validity of IR Reward Rules and the Customs Reward Rules.
The petitioner contends that these rules have allegedly facilitated an “unbridled and unconstitutional distribution of millions from the public exchequer” in the form of rewards to senior FBR officers.
Speaking to Business Recorder, Constitutional Lawyer Muhammad Azhar Siddique alleged that the scheme is an institutionalized plunder of public money. He added that the LHC’s decision to seek explanations from the highest levels of government demonstrates the seriousness of the allegations and the need for transparent scrutiny of how public funds have been utilized, he accused.
Despite the court’s notice, the FBR has so far not filed its comments, raising further questions about the institution’s position on the matter.
The case is expected to set significant legal precedent regarding accountability, transparency, and financial propriety within federal revenue institutions. Proceedings will continue upon receipt of responses from the officials summoned by the court: Azhar added.
Reward mechanism is based on a “forced peer ranking” system, allegedly introduced without approval of the statutory Policy Board as mandated under the FBR Act, 2007.
Officers were classified into categories carrying rewards equivalent to multiple additional salaries for a six-month period, resulting in unjust enrichment of officials at the cost of taxpayer’s money.
FBR Board-in-Council composition and decisions are ultra vires the FBR Act, 2007, and in violation of Supreme Court judgment in PLD 2016 SC 808. It is argued that any financial benefits or incentives granted without lawful authorization and parliamentary oversight are void ab initio: tax lawyer Waheed concluded.
Copyright Business Recorder, 2026
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