Shabbar Zaidi to head FBR

ISLAMABAD: After dropping the name of Ahmed Mujtaba Memon, the government has nominated Shabbar Zaidi as Chairman of the Federal Board of Revenue (FBR).

The notification for appointment of renowned Chartered Accountant as Chairman FBR has not yet been issued. It is expected that a formal notification will be issued after getting approval from the cabinet, which is going to meet under chairmanship of Prime Minister Imran Khan on Tuesday (today).

On the other hand, there is an increasing possibility that after issuance of notification, this appointment may land before the judiciary as the appointment of former chairman Ali Arshad Hakeem was also challenged before the court during the PPP-led regime and finally the Islamabad High Court had ousted him in its verdict.

Now the FBR’s present and retired employees are considering to approach the superior courts against this appointment after issuance of formal notification. The FBR’s Officers Association belonging to both Customs and IRS decided to take the final decision on this issue after holding consultative meeting on Tuesday (today).

The name of Ahmed Mujtaba Memoon was dropped because there were 21 officers belonging to both Customs Group and Inland Revenue Service (IRS) within the grade of BS-21 and BS-22 who were senior to him. The official record of FBR also showed that once the issue of purchasing a house in Canada was made part of official record; it is not known that what kind of action was taken against him.

Prime Minister Imran Khan himself made disclosure about appointment of Shahbar Zaidi as Chairman FBR during his talk with the senior journalists on Monday. Shahbar Zaidi is a known professional chartered accountant and enjoys reputation for his extensive contribution to taxation and fiscal laws of the country.

He is a senior partner of accountancy firm AF Ferguson & Co. He has also been the president of the Institute of Chartered Accountants of Pakistan and chairman of the South Asian Federation of Accountants. He also authored some books, including ‘Panama Leaks – A Blessing in Disguise’ and ‘A Journey for Clarity and Pakistan: Not a Failed State’.

However, the FBR Officers Associations in their initial response stated in a statement that appointment of Shabbar Zaidi as chairman FBR will lead to unrest and strong disappointment in FBR ranks.

They stated that the FBR officers have conveyed their serious concerns and reservations over the government’s decision to appoint Syed Shabbar Zaidi as Chairman FBR. The appointment of a partner of chartered accountant firm to the most important and sensitive position is considered a high-risk area for conflict of interest and Shabbar’s placement is one fit case.

They reminded that previously, Islamabad High Court declared Arshad Ali Hakeem's appointment as Chairman FBR as illegal and unconstitutional. Being a senior partner of an accountancy firm A F Ferguson & Co, Shabbar’s appointment raises serious doubts about his impartiality and sincerity with premier revenue agency as he is pleading the cases of companies involving hundreds of billions of rupees as tax revenues.

Moreover, they stated his appointment has been made ignoring more than 10 senior-most Inland Revenue Service and Pakistan Customs Service Officers serving in BS-22. This action has also been viewed as mistrust and no-confidence in more than 2,000 officers working in both cadres of FBR.

The government is repeatedly demoralising the two cadres in FBR by appointing chairman FBR either from PAS and now a private individual from a chartered accountant firm. If at all his expertise is inevitable to be utilised, the government may appoint him as adviser being the prerogative of the government to appoint any person against a position meant for political appointees, they added.

The FBR officers requested the government to review this decision and appoint one of the officers in BS 22 from the IRS or Customs, otherwise the prevailing unrest may further widen the revenue shortfall being faced by the FBR through the wrong policy measures taken by the previous government without working out the revenue implications, they maintained. Moreover, they warned that there is every likelihood that this decision may be challenged in court of law.