FBR to Investigate Its Own ‘Reward Payouts’ of Rs. 48.4 Crore After AGP Revelation

The Auditor General of Pakistan (AGP), in its audit report, revealed that cash rewards amounting to Rs. 484.44 million were disbursed in violation of rules and without proper determination of merit.

The calculation of rewards in cases involving evasion of duties and taxes and confiscation of goods shall be sanctioned only after the realization of the duties and other taxes involved. Furthermore, cash rewards to employees are allowed on the basis of meritorious or extraordinary services performed, as prescribed under the reward rules.

The FBR informed the AGP that rewards were granted to employees based on meritorious services rendered by officers and officials, duly approved by the Board.

“Meritorious services” include exceptional performance such as exceeding budgetary targets through extraordinary planning and efforts, achieving outstanding results in the recovery of arrears, expanding the taxpayer base, demonstrating exceptional performance in defending cases before the ATIR, and showing extraordinary devotion to duty and professional acumen resulting in original contributions.

The AGP instructed the FBR to strictly enforce the system of cash reward payments and ensure that only meritorious services are rewarded.

Some of these rewards were reportedly paid to Commissioners Inland Revenue (Appeals), their staff, and departmental representatives responsible for expediting cases. The AGP also ordered the recovery of rewards from 40 tax officials who received payments in violation of reward rules over the past two fiscal years.

Sources said the FBR has assigned the Chief (Legal), FBR, to supervise an audit team that will examine all case rewards sanctioned, disbursed, or pending in the Collectorates of Customs (Enforcement) in Lahore, Multan, and Quetta for the period from July 2021 to December 2025.

The audit will cover fully and partially disbursed rewards, pending or unpaid rewards, verification of shares allocated to informers, staff, and the Customs Performance Fund (CPF), as well as the processing of matured and non-matured rewards.

According to official instructions, the audit team is required to complete the exercise within three weeks and submit its report to the Board.