Tax backlog hits 68,000 despite 24 private members inducted on monthly salaries of up to Rs2.6 million; review panel formed

Pakistan’s tax litigation backlog has climbed to around 68,000 cases despite the appointment of 24 private-sector members to the Appellate Tribunal Inland Revenue on monthly salaries of up to Rs2.6 million, prompting the federal government to order a review of their performance, Dawn reported. 

A four-member high-level committee will assess the efficiency and conduct of the appointees and recommend whether they should be retained, granted tenure extensions or removed on grounds of inefficiency or misconduct.

The members were hired under the 2024 recruitment framework on market-based salaries, along with perks and privileges, to accelerate the disposal of tax disputes and reduce the mounting backlog.

However, pending cases have continued to increase despite the expansion in the tribunal’s strength.

Official estimates show that tax tribunals are disposing of nearly 1,000 cases each month. At the current pace, clearing the existing backlog would take between five and six years, even if no new appeals were filed.

Of the total pending cases, around 60,000 relate to Inland Revenue Service matters, while about 8,000 involve customs disputes.

Punjab accounts for nearly 76% of the pending cases, with Lahore carrying the largest share of the caseload.

The review committee comprises retired justices Athar Saeed and Tariq Abbasi, Telecommunication Appellate Tribunal Chairman and retired Inland Revenue Service officer Shad M. Khan, and chartered accountant Ghazi Akhtar Khan.

It will examine whether the recruitment of private-sector members on market-based salaries has improved the disposal of tax cases or whether administrative and operational shortcomings continue to affect the tribunal’s performance.

The review follows a report submitted in May by a task force established by Prime Minister Shehbaz Sharif to examine case backlogs in superior courts and specialised tribunals.

The report highlighted the performance of tax tribunals, leading the government to order an independent assessment.

The Federal Board of Revenue’s legal wing, which has around 50 staff members, including a legal member, manages tax litigation. Two chairmen oversee the tribunal’s judicial and administrative functions.