PIC Orders FBR Secretary to Explain Pakistan’s Tax System’s Lack of Transparency

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Islamabad : The Pakistan Information Commission (PIC) has demanded that the Secretary of the Federal Board of Revenue (FBR) reveal the amount of taxes paid by politically-exposed individuals (PEPs) like BPS-17 to BS-22 government officials. The PIC has requested an explanation from the Secretary FBR as to why the agency is refusing to disclose information required to be disclosed under CVT under Section 8(2)(b) of the Finance Act, 2022, Section 4C (Supertax), and Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001. This information pertains to tax payments made by BPS-17 to BS-22 public officials, their spouses/children, or beneficial owners.

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Waheed Shahzad Butt, a tax attorney, filed a complaint/appeal against the FBR, accusing it of withholding vital information. This prompted the agency to issue the instruction. The appellant stated that he had contacted the FBR Chairman for clarification but had heard nothing back.

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Attorney Butt had filed a request for this data under the Right to Know Act of 2017. (RTI). According to Waheed Shahad Butt, the FBR’s silence indicates that the RTI law has been deemed ineffectual and is being used by tax authorities to withhold even the most fundamental tax information.

Butt has asked for a detailed accounting of any CVT, Supertax, or Deemed income tax payments made by PEP to the national exchequer. They included the President of Pakistan, federal ministers, judges of the highest and highest appellate courts, ombudsmen at the federal and provincial levels, the Chief Election Commissioner, members of the Election Commission of Pakistan (ECP), the Chairman of the National Accountability Bureau (NAB), etc.

This is what the PIC notice says: “The PIC has scheduled a normal hearing to consider the aforementioned appeal. You (the FBR official) are now commanded to come before the Commission or send a representative/public information officer/designated officer to represent the department/public body at the time of the hearing in order for the Commission to execute the powers conferred upon it by law. If the defendant does not show up to the hearing, a decision will be made Ex-Parte, and legal action will be taken against the responsible party in line with the applicable sections of the Act “a new order to the PIC.

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