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Lahore High Court Issues Notices to Top Officials Over Alleged Illegal Distribution of Billions Under FBR Reward Schemes

According to sources, the Lahore High Court has issued notices to senior government officials over allegations of the illegal distribution of billions of rupees under the Federal Board of Revenue’s incentive schemes (IT-Based Reward and Rating System).

According to information received from sources, the High Court has directed the Prime Minister’s Principal Secretary, the Chairman FBR, members of the FBR Policy Board, federal ministers, heads of parliamentary finance committees, the Auditor General of Pakistan, and the Director General FIA to submit their replies.

In this regard, a petition filed by lawyer Waheed Shehzad Butt through international constitutional lawyer Muhammad Azhar Siddique is based on Article 199 of the Constitution and challenges the legality, transparency, and constitutional validity of the IR Reward Rules 2021 and Customs Reward Rules 2012.

The petition alleges that senior officers of the Inland Revenue Service (IRS) and Pakistan Customs (BS-17 and above) were given illegal rewards in addition to double salaries, causing massive losses to the national exchequer. It further states that under the controversial forced pair ranking system, officers were placed into different categories and awarded incentives equivalent to multiple additional salaries for six months, leading to the misuse of public funds.

It is also stated that the establishment and decisions of the FBR Board-in-Council are against the FBR Act 2007 and in violation of the Supreme Court judgment PLD 2016 SC 808. The petition holds the Policy Board, parliamentary finance committees, and senior government officials responsible for failing to oversee taxpayers’ money.

The petition seeks the recovery of illegal rewards, a special audit by the Auditor General, and civil and criminal proceedings against those responsible.

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