Islamabad, March 28, 2025 – The Federal Board of Revenue (FBR) has taken decisive action against Commissioner Inland Revenue (IR) Zahid Mahmood, a BS-19 officer, after an inquiry confirmed his involvement in misconduct and corruption.
As a result, he has been handed a major penalty, which includes a demotion to a lower post and pay scale for the remainder of his service.
Zahid Mahmood previously served as Commissioner-IR (OPS) in the DG Khan Zone, Regional Tax Office (RTO) Multan. According to an official notification from the Revenue Division, disciplinary proceedings against the Commissioner were initiated under the Civil Servants (Efficiency & Discipline) Rules, 2020. The inquiry, led by Ms. Yasmeen Fatima (IRS/BS-20), found substantial evidence of misconduct and corruption. The inquiry report, submitted on November 7, 2022, provided the foundation for further legal proceedings.
As part of the process, a Show Cause Notice was issued to Commissioner Zahid Mahmood on November 30, 2022. In response, he submitted his written defense on March 12, 2023. To ensure due process, Sheikh Zahid Masood (IRS/BS-20), Chief Commissioner-IR (OPS) at the Corporate Tax Office, Karachi, was appointed as the Hearing Officer. He conducted a personal hearing on November 8, 2024, where Zahid Mahmood was given an opportunity to defend himself.
After thoroughly reviewing the inquiry report, hearing statements, and written responses, the Hearing Officer recommended a major penalty under Rule 4(3)(b) of the Civil Servants (Efficiency & Discipline) Rules, 2020. The Secretary Revenue Division formally approved the penalty, finalizing the decision.
In addition to the major penalty, Zahid Mahmood’s performance allowance has been suspended for one year under the Performance Allowance Guidelines, 2015. He will need to submit a fresh application for its restoration. Furthermore, the Commissioner retains the right to appeal against the penalty within 30 days, as per the Civil Servants (Appeals) Rules, 1977.
The FBR’s decision to enforce this penalty underscores its commitment to accountability and transparency. By upholding strict disciplinary measures, the Revenue Division aims to curb corruption and misconduct within its ranks, reinforcing ethical governance in Pakistan’s tax administration system.