LAHORE: The Lahore High Court (LHC) has issued notices to senior government officials, seeking their replies to allegations of unlawful distribution of millions of rupees from the public exchequer by the Federal Board of Revenue (FBR) under its reward schemes, including the IT-based Reward & Rating System (RRS).
The court has directed the Principal Secretary to the Prime Minister, Chairman FBR, members of the FBR Policy Board, federal ministers, heads of parliamentary finance committees, the Auditor General of Pakistan, and the Director General of the FIA to submit their comments.
The writ petition, filed by Advocate Waheed Shahzad Butt through international constitutional lawyer Muhammad Azhar Siddique under Article 199 of the Constitution, challenges the legality, transparency, and constitutional validity of the Inland Revenue Reward Rules, 2021, and the Customs Reward Rules, 2012.
The petition alleges that senior officers of Inland Revenue Service and Pakistan Customs (BS-17 and above) were granted rewards in addition to double salaries, resulting in significant losses to public revenue.
Muhammad Azhar Siddique said the court’s intervention highlights what has been described as an institutionalized misuse of public funds, with millions allegedly distributed among senior FBR officers under the pretext of rewards.
According to the petition, the disputed reward mechanism is based on a “forced peer ranking” system, which was allegedly introduced without approval of the statutory Policy Board, as required under the FBR Act, 2007. Officers were reportedly placed in various categories carrying rewards equivalent to multiple additional salaries for a six-month period, leading to alleged unjust enrichment at taxpayers’ expense.
The petitioner has also questioned the constitutionality of the FBR Board-in-Council, arguing that its composition and decisions are ultra vires the FBR Act, 2007, and contrary to the Supreme Court’s judgment in PLD 2016 SC 808. It is contended that financial incentives granted without lawful authority and parliamentary oversight are void ab initio.
The petition further accuses the Policy Board, parliamentary standing committees on finance and revenue, and senior government officials of failing in their constitutional oversight responsibilities. It seeks recovery of the allegedly illegal rewards, a special audit by the Auditor General of Pakistan, and initiation of civil and criminal proceedings against those responsible for losses to the national exchequer.
The LHC has taken notice of what the petitioner describes as a matter of serious public importance involving alleged institutional misuse of public funds. The case is expected to test the scope of executive discretion in reward policies and the accountability of senior revenue officials.
