ISLAMABAD: The Federal Board of Revenue (FBR) has suspended a Senior Auditor posted under Section 40B of the Sales Tax Act, 1990, at a feed mill in southern Punjab following allegations of harassment.
The auditor, a BS-17 officer assigned to the Regional Tax Office (RTO) in Multan, was overseeing the supply of taxable goods at the premises when complaints were lodged against him.
The FBR issued a suspension order in accordance with Rule 5(1) of the Civil Servants (Efficiency and Discipline) Rules, 2020. The suspension will remain in effect for 120 days or until further orders, whichever comes first.
Commenting on the development, Shahid Jami, a tax consultant for several feed manufacturers, praised the FBR for taking swift disciplinary action. He said the chairman of the FBR had assured industry representatives that the board would not tolerate any form of misconduct or harassment by its officials.
“This is a positive signal for compliant businesses,” Jami said. “The FBR’s prompt action shows commitment to creating a fair and transparent tax environment.”
Call for support & review of monitoring policy
While welcoming the suspension, Jami also urged the FBR to ensure that officials deployed under Section 40B are equipped with the necessary logistical support and facilities. He emphasized that extended postings at factories—often lasting over 30 days—should not become a burden for businesses that are voluntarily complying with tax regulations.
He further recommended that when declared taxable supplies are found to align with monitored figures, and there is a consistent pattern of voluntary compliance, the need for continuous physical monitoring should be reconsidered. “Such interventions should be limited to cases where credible evidence of underreporting exists,” he said.
The suspension comes amid broader efforts by the FBR to enhance field oversight and ensure tax compliance across various sectors.
However, the board is also under increasing pressure from the business community to balance enforcement with facilitation, particularly for sectors that demonstrate a record of compliance.
