Islamabad: Federal Board of Revenue (FBR) has outrightly declined to share details about amount paid as cash rewards to its officers for reducing ‘tax evasion’.
As reported by Express Tribune, the FBR said divulging the amount was not in public interest. This information had been sought by a lawyer of the Supreme Court under the Freedom of Information Ordinance 2002.
He had sought complete information of the total reward given to FBR officers since 2013, which the tax watchdog gives under Section 227-A of the Income Tax Ordinance. The lawyer had not sought the name of those FBR officers and informers.
Citing Section 8 (i) of the Information ordinance, the FBR refuse to release the details and said the information sought cannot be made public and is restricted in its reply to the SC lawyer.
The Freedom of Information Ordinance was introduced during the tenure of ex-President Pervez Musharraf, which failed in its intended purpose of giving meaningful information to the applicant.
Parliament has been considering replacing this ordinance with a new piece of legislation but the proposed draft also has certain information omitted from public domain.
FBR through Income Tax Ordinance (ITO) 2001, had introduced cash rewards to be given to the workforce for the job they had been employed for.
As per Section 227-A of ITO 2001, FBR is entitled to pay cash rewards to its informers and officers who gave information in uncovering hiding or evasion of income tax and other taxes. The law further adds that cash rewards will be given for their exceptional conduct and “other meritorious services” which has been added through Finance Act 2017.
FBR has failed in reducing tax evasion as a recent report from World Bank cited Pakistan’s tax gap stands around Rs3.5t because of inefficiency and nepotism in the tax machinery.
During FY 2016-17, FBR’s tax to GDP ratio fell to an abysmal low of 10.6pc which is now the centerpiece of discussion in respect to worsening health of country’s economy.
And a recent report by the FBR submitted to a senate panel disclosed that hundreds of tax officials, were undergoing inquiries and still serving at key posts.
FBR is offering cash rewards of 5pc to 20pc and also offering Rs100,000 to Rs150,000 in cash for recovered tax amount. If an officer recovers Rs500,000, he is offered 20pc of it as a cash reward. On the recovery of Rs1m, the officer will receive Rs100,000 plus 10pc of recovered amount.
If recover amount crosses Rs1m, the officer is qualified to receive Rs150,000 cash award plus 5pc of recovered amount.
