ISLAMABAD: The Federal Board of Revenue (FBR) has softened a major disciplinary action against a senior auditor accused in a Rs238.42 billion sales tax fraud, reducing his punishment from dismissal to a minor penalty of withholding promotion for three years.
The proceedings stemmed from an intelligence report forwarded by the Prime Minister’s Office, prompting an inquiry against Altaf Hussain Khurho, then Senior Auditor (BS-17) at RTO-I Karachi, under the Civil Servants (Efficiency and Discipline) Rules, 2020.
An inquiry led by Aftab Alam (IRS/BS-20) initially proposed a minor penalty of withholding promotion for one year. However, the Authority Member (Administration/HR) later imposed the major penalty of removal from service, citing the gravity of the lapses.
Khurho appealed the decision, arguing for suspension of the removal order and requesting a personal hearing. During the review, the Appellate Authority acknowledged that while charges of inefficiency — including failure to pursue arrests, follow up on bail cancellations, and file a detailed challan — were proven, the case also included strong mitigating factors.
Record showed that Khurho had blocked Rs237.137 billion in fake input tax — 99.46% of the total fraudulent amount — and facilitated the recovery of Rs117.413 million, nearly 59% of the illicit output tax.
Considering both the misconduct and the auditor’s significant contributions, the Secretary Revenue Division / Chairman FBR ruled that neither the original minor penalty nor the subsequent dismissal was proportionate. The dismissal was therefore downgraded to a minor penalty of withholding promotion for three years under Rule 4(2)(d) of the E&D Rules, 2020.
Khurho has been reinstated, with the period from his removal on October 17, 2025, to reinstatement treated as leave of the kind due.
