FBR officers fail competency test, only 29 qualify to independently decide tax cases

KARACHI: A competency assessment of Inland Revenue officers conducted on the instructions of Federal Board of Revenue (FBR) Chairman has revealed major gaps in the professional and legal capabilities of officers responsible for handling sales tax and income tax cases.



According to the assessment report, 150 sales tax officers and 143 income tax officers participated in the examination aimed at evaluating their ability to independently prepare and issue legally sound tax orders.

The findings revealed that only 15 sales tax officers were found capable of independently issuing legally valid tax orders, while only 14 income tax officers demonstrated the ability to decide tax cases on their own.

The overall performance of FBR officers was also unsatisfactory, with average scores recorded at just 26.4 per cent in sales tax and 33.3 per cent in income tax.

Notably, no sales tax officer managed to secure 60 per cent marks in the assessment. In the income tax category, only four officers achieved 60 per cent or above.

The report further revealed that 47 sales tax officers and 16 income tax officers scored less than 20 per cent, highlighting serious deficiencies in their understanding of tax laws and legal procedures.

The assessment, which covered officers in Grade 17 and above, also examined their ability to review tax cases, issue legal notices, prepare assessment orders and identify legal errors in decisions drafted by other officers.

According to the report, the FBR faces a serious shortage of officers capable of independently issuing orders that meet legal requirements. While approximately half of the officers demonstrated the ability to prepare draft orders, their work requires scrutiny by senior officials.

In terms of reviewing orders prepared by other officers, only 21 sales tax officers were found capable of conducting effective legal scrutiny. In the income tax category, the number stood at 28.

However, only eight officers across both tax categories were identified as capable of effectively reviewing orders prepared by their colleagues and identifying legal shortcomings.

The assessment also highlighted weaknesses among senior officials, including commissioners and additional commissioners, who are expected to provide legal oversight and ensure the accuracy of tax orders.

Of the 56 sales tax commissioners and additional commissioners assessed, only four demonstrated the ability to effectively scrutinise tax orders. Similarly, only six out of 53 commissioners and additional commissioners in the income tax category were found capable of conducting an effective legal review.