Islamabad, Apr 27, 2025: The Friends of Pakistan, a tax advisory firm, has voiced significant concerns regarding the ongoing reform efforts at the Federal Board of Revenue (FBR).
In a letter addressed to the Prime Minister, the firm’s Chief Coordinator highlighted that many of the current initiatives under the transformation plan are not yielding the expected results.
Instead, they are causing more harm than good, particularly for the taxpayers, whose situation has worsened.
The implementation of faceless assessments was introduced with the promise of eradicating corruption; however, the reality has been quite different.
There are now more delays in the system than ever before, with over half of the Goods Declarations (GDs) requiring a second review by Deputy/Assistant Collectors.
This process is time-consuming and less efficient than the previous system, leading to increased demurrages and additional costs.
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Only GDs that are cleared through the green channel or have personal influence behind them manage to pass the initial steps.
The advisory firm suggested that a thorough system audit of the WeBOC system be conducted, particularly focusing on the period since the faceless assessment was introduced.
This audit should assess the delays in clearances, the overall impact on revenue, and the reasons behind the growing number of Green Channel importers.
Furthermore, the firm questioned the role of Deputy and Assistant Collectors in the system, wondering if they are contributing anything useful or merely wasting time and engaging in corrupt practices.
The firm also raised concerns about the newly introduced rating and reward system, which, according to them, lacks transparency.
Inefficient and idle workers seem to have benefited from the system, while efficient employees with a good reputation are being overlooked.
Additionally, lower-level staff members have been protesting and demanding rewards or additional compensation, staging sit-ins at the LTU in Karachi and Islamabad.
This is particularly problematic during the final quarter of the fiscal year, when the entire department should be focused on generating more taxes.
The firm further proposed that ratings should be shared with the officers themselves, instead of keeping them secret.
Furthermore, the individual ratings of officers should be visible to them, ensuring more transparency. According to the firm, both the current and past managements of the FBR have failed to meet their objectives due to inefficiency, poor administration, and questionable motives.
They urged the Prime Minister to address these issues to improve the department’s performance.
By focusing on these areas, the firm believes that the FBR can improve its processes, reduce inefficiency, and ultimately enhance the revenue collection system for the benefit of taxpayers and the nation.
