ISLAMABAD: The Federal Board of Revenue (FBR) has imposed a major penalty on an Inland Revenue intelligence officer following the conclusion of disciplinary proceedings in a high-profile raw tobacco tax case.
According to official details released on Thursday, the case involved Muhammad Ismail, Inspector Inland Revenue (BS-16), posted at the Directorate of Intelligence & Investigation (IR), Peshawar.
The proceedings were initiated through an Order of Inquiry, Charge Sheet, and Statement of Allegations issued on September 26, 2025. A senior officer of the Inland Revenue Service (BS-19) was also named as a co-accused in the matter.
The inquiry was conducted by Uzma Munir, Commissioner Inland Revenue at Regional Tax Office Islamabad. In her report submitted on December 30, 2025, she concluded that all charges against the accused officer were proven. The report recommended a major penalty under the Civil Servants (Efficiency and Disciplinary) Rules, 2020.
During the investigation, it was revealed that the accused officer failed to disclose the presence of green leaf (raw tobacco) in a contravention report related to a raid conducted on July 11, 2025, at the premises of M/s Sunslice Beverages. When questioned, the officer argued that raw tobacco was not a taxable or excisable item and that he was not authorized by his high-ups to take action on tobacco-related matters.
However, the inquiry found that even if no action was required, the omission of such critical information in the official report constituted misconduct. The officer failed to provide a satisfactory explanation during a personal hearing held on March 16, 2026.
After reviewing all evidence, the FBR Chairman, acting as the competent authority, imposed the major penalty of “compulsory retirement” under relevant rules. The official retains the right to file an appeal within 30 days under the Civil Servants (Appeal) Rules, 1977.
