FBR Receives Clearance to Reshuffle Senior Officers

The Federal Board of Revenue (FBR) has received clearance from intelligence agencies to proceed with the appointment and reshuffling of senior officers, according to sources. The Directorate of Intelligence and Investigation Inland Revenue (I&I IR) has provided input regarding the transfers and postings within the Inland Revenue Service (IRS).

This move raises questions about the effectiveness of a similar exercise conducted in March 2024 under the directives of Prime Minister Shehbaz Sharif. During that exercise, intelligence agencies categorized senior FBR officers into A, B, C, and D groups based on financial integrity and professional competence. However, it has been suggested that the previous efforts may have had deficiencies.

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In March, around 48 officers, including a BS-21 officer awarded the Tamgha-e-Imtiaz just a month prior, were relegated to the administrative pool. In July, another two dozen officers were added to the pool, yet no charge sheets have been issued against them after nearly six months. The prolonged lack of formal charges has created uncertainty and dissatisfaction among the officers.

This initiative echoes similar efforts from past decades, including a mass suspension of 1,000 FBR officials in 2000 under President Pervez Musharraf’s administration, which ultimately saw reinstatements through judicial rulings. In 2007, integrity screenings accompanied reforms and a special pay package across the FBR.

The recent exercise has led to junior officers being appointed to senior roles due to the limited availability of integrity-cleared candidates. This shortage has also impacted the functioning of the Appellate Tribunal Inland Revenue (ATIR), with delays in recommending officers for tribunal positions.

These developments have drawn criticism, particularly regarding the effectiveness and fairness of the integrity evaluations. FBR’s financial performance has been affected, with the tax body facing an unprecedented shortfall of over Rs. 350 billion in the first five months of FY25. Additionally, questions remain about the parameters used to assess officers’ financial and professional integrity and why similar reforms are not being applied to other service groups.

The ongoing situation highlights the need for clear criteria and broader accountability reforms to restore confidence within the FBR and improve its operational effectiveness.

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