Investigation into ‘sale of non-customs-paid goods’: FBR delays implementation of FTO’s recommendations

Business Recorder reported that the Federal Board of Revenue (FBR) has again postponed carrying out binding directions from the Federal Tax Ombudsman (FTO) to probe an alleged nationwide scheme that sold goods on which customs duty had not been paid. The ombudsman had ordered a detailed inquiry into claims that the scheme operated with help from officials of Customs and Inland Revenue. The complaint came from Waheed Shahzad Butt, who accused FBR of ignoring written requests and evidence, including a sting operation.

The FTO had instructed FBR to investigate and report within one month, but the department did not respond, send anyone to represent it or file comments. In his findings, the ombudsman described the record as showing large volumes of online transactions and held that FBR's inaction amounted to maladministration. He also directed disciplinary proceedings under the E&D Rules 2020 against responsible officers and asked the intelligence directorates of Customs and IR to conduct a detailed probe.

FBR later filed a review petition seeking withdrawal only of the disciplinary direction, while not contesting the orders for investigation, follow-up and compliance reporting, and its representative apologised unconditionally. According to the complainant, the 90-day period for compliance has lapsed with no investigation report shared with him or placed before the FTO. He has asked the FTO to start defiance proceedings and make the report public.