A competency assessment of Inland Revenue officers, carried out on the instructions of the Federal Board of Revenue (FBR) Chairman, has exposed major gaps in the professional and legal skills of officers who handle sales tax and income tax cases, according to the assessment report.
The examination involved 150 sales tax officers and 143 income tax officers and tested whether they could independently prepare and issue legally sound tax orders. Only 15 sales tax officers and 14 income tax officers were found capable of doing so, meaning just 29 officers can decide cases on their own.
Low scores and few top performers
Average scores stood at just 26.4 per cent in sales tax and 33.3 per cent in income tax. No sales tax officer secured 60 per cent marks, while only four income tax officers reached that level or higher.
The report also found that 47 sales tax officers and 16 income tax officers scored less than 20 per cent. It pointed to serious deficiencies in their understanding of tax laws and legal procedures. The assessment covered officers in Grade 17 and above and examined their ability to review cases, issue legal notices, prepare assessment orders and spot legal errors in decisions drafted by colleagues.
Shortage of officers able to review orders
According to the report, the FBR faces a serious shortage of officers able to issue orders that meet legal requirements. About half of the officers could prepare draft orders, but those drafts still need scrutiny by senior officials.
Only 21 sales tax officers and 28 income tax officers were found capable of effective legal scrutiny of orders prepared by others. Across both categories, just eight officers could review colleagues’ orders and identify legal shortcomings.
Weak oversight among senior tax officials
The assessment also flagged commissioners and additional commissioners, who are expected to provide legal oversight and ensure the accuracy of tax orders. Of the 56 sales tax commissioners and additional commissioners assessed, only four could effectively scrutinise orders.
In the income tax category, only six of 53 commissioners and additional commissioners were found capable of conducting an effective legal review.
