FBR Imposes Major Penalty on Customs Appraiser for Facilitating Tax Evasion

FBR Imposes Major Penalty on Customs Appraiser for Facilitating Tax Evasion

Islamabad, October 10, 2024 — The Federal Board of Revenue (FBR) has taken decisive action by imposing a major penalty on Shahzad Ameen Ahmed Babar, an appraising officer of Pakistan Customs, for facilitating the evasion of duties and taxes.

The officer was found guilty of gross misconduct and inefficiency after an internal inquiry revealed significant discrepancies in his examination of import consignments, resulting in substantial losses to the national exchequer.

Disciplinary proceedings were initiated against Mr. Babar under the Civil Servants (Efficiency & Discipline) Rules, 2020, after he was accused of misreporting or failing to report goods in examination reports he uploaded to the WeBOC system. These reports pertained to three Goods Declarations (GDs): ICAPS-HC-130317, KAPS-HC-130306, and KAPS-HC-130915. Following credible information and a re-examination of the consignments, major discrepancies were uncovered, pointing to the officer’s role in aiding importers to evade duties amounting to Rs. 10,071,236. The re-examination report revealed a total of Rs. 4,059,198 in unpaid duties and taxes.

Mr. Babar was subsequently suspended, and an inquiry was ordered. A charge sheet citing “inefficiency” and “misconduct” under Rule-3 of the Civil Servants (Efficiency & Discipline) Rules, 2020, was served to him on June 26, 2024. Raissa Kanwal, an officer from PCS/BS-18, was appointed as the inquiry officer to assess the conduct of the accused.

In her report, dated August 17, 2024, the inquiry officer concluded that the Rs. 4 million shortfall in duties was a significant failure on Mr. Babar’s part, and he was unable to provide a satisfactory explanation. The inquiry found the charges of misconduct and inefficiency to be substantiated, recommending the imposition of a minor penalty. However, upon review of the inquiry findings, the FBR opted for a more severe punishment.

A show-cause notice was issued on August 23, 2024, followed by a personal hearing on October 3, 2024, where the Departmental Representative (DR) presented evidence of Mr. Babar’s failure to report the actual quantity and weight of high-value items. The officer’s negligence led to a potential loss of Rs. 4 million to the government.

After careful deliberation, the FBR authority concluded that Mr. Babar had failed to justify the discrepancies in his examination reports. Consequently, the FBR imposed a major penalty of “Reduction to a lower post and pay scale from Appraising Officer (BS-16) to Assistant (BS-15) for a period of three years.” Additionally, Mr. Babar’s performance allowance has been suspended for one year, and the period of his suspension will be treated as leave without pay.

Mr. Babar retains the right to appeal this decision under the Civil Servants (Appeals) Rules, 1977, within 30 days of the notification.