Prime Minister (PM) Shehbaz Sharif directed the Federal Board of Revenue (FBR) on Thursday to identify ‘weak cases’ to expedite the resolution of pending revenue-related cases and to appoint qualified experts to a panel for identification.
The PM issued this instruction to both the FBR and Law Division officials in a meeting to resolve legal cases that have been pending for extended periods. Analysts predict that this directive will be beneficial as the authorities will finally oversee longstanding cases.
According to reports, over 33,000 cases currently remain unsolved, with a financial value of approximately 4.7 trillion rupees. These pending cases are not to be considered by a singular executive body but rather fall under the jurisdiction of various courts and tribunals.
Shehbaz Sharif’s directives allow for the FBR panel to recommend an immediate withdrawal of weak cases once the panel has reviewed them.
The creation of the panel may result in business owners facing higher taxes in the future, as the department can suggest “high-potential cases” where taxes can be raised.
FBR’s officials have adopted three main decisions to handle the pending cases as per reports. Digital guidelines are to be utilised to assess officers and cater to them so that they can make efficient decisions.
However, analysts have highlighted how this panel should be free from corruption, as officials could unfairly withdraw cases. The concerns are genuine, as any cases unfairly dismissed will significantly hurt the national exchequer, which the cash-strapped nation cannot afford.
However, the meeting also outlined important procedures for vetting competent and impartial officers before adding them to the panel. It was reported that the original assessing officers would defend their cases at tribunals instead of the panel members.
To further curb the possibility of officials corrupting the process, authorities present in the meeting decided that four to five individuals with good reputations would be appointed to defend their cases at the tribunals. The appointment of these individuals will require them to clear a set of ‘competitive examinations’.
Shehbaz Sharif also highlighted that officers who perform their duties with diligence and honesty will be rewarded, while dishonest practices will result in severe consequences.
Analysts are speculative about the economic gains which could be realised if the FBR were to receive the outstanding value of 4.7 trillion rupees. If the FBR can extract this amount from the pending cases, it would be enough to finance approximately 25 percent of the federal budget for the Fiscal Year (FY) 2024-25.
