The picture that emerges is of gross inefficiency, maladministration and corruption in an organization that is geared to further principally individual and communal self-inertest of a few individuals at the cost of Pakistan and her people

-- Report on ISAF Container Scam by Office of Federal Tax Ombudsman (January 10, 2011)

The above state of affairs of the Federal Board of Revenue (FBR), apex federal revenue authority, highlighted in 2011 by Federal Tax Ombudsman (FTO) was shocking but what is more despicable is the fact that it has further deteriorated since then. The reason is simple -- culprits have not been brought to book even after a lapse of seven years despite clear instructions of the Supreme Court of Pakistan in Suo Motu Case No.16 of 2010.

It is a matter of regret that at the cost of the country, loot and plunder continues unabated due to unholy alliance between unscrupulous businessmen and corrupt officials that is causing a loss of billions of rupees -- details are available in numerous letters sent to FBR and National Accountability Bureau by the Transparency Pakistan since 2010. There is not only a complete lack of will to enforce tax obligations but the Parliament is always inclined to give more and more tax amnesties and tax concessions to tax evading persons engaged in organised crimes. Tax officials feel helpless before mighty segments--politicians and greedy businessmen having their support.

The SC in Suo Motu Case No.16 of 2010 after considering Report on ISAF Container Scam by Office of Federal Tax Ombudsman and One-man Commission Report of Ramzan Bhatti, ex-Member Customs, passed strictures and highlighted recommendations of Commissions it formulated but till today no action has been taken.

The SC in its order of March 4, 2013 in CMA No.2243 & 3683 of 2012 in SMC No.16 of 2010 held: "The performance of the FBR, as indicated by the report, now submitted is far from satisfactory. Despite a lapse of almost one and a half year since the Report was compiled by the Federal Tax Ombudsman, no progress worth mentioning has been made for the recovery of the loss identified, which is regrettable." Now seven years have passed and it appears that Supreme Court has also lost track of its order.

The SC takes suo motu actions, passes orders and thereafter, no follow-up mechanism is available. This raises a serious question of solving problems through court intervention. Politicians and government officials get rough time at the hands of Supreme Court and High Courts where issues of fundamental rights are involved. It is the duty of the higher courts to safeguard and enforce fundamental rights of the people under the Constitution.

However, non-compliance on the part of the executive will continue unless there is a paradigm shift in their thinking and reforms in outmoded systems. For example, the SC while dealing with the case of missing containers, never ordered installing equipment to x-ray and scan incoming and outgoing containers. This is where the actual problem lies. Corruption can be minimized through the use of technology and better monitoring system but neither the Court nor the government has ever pondered about this solution.

In an article published way back in 2012, it was observed:

"It is a disturbing reality that containers--both inbound and outbound--are not scanned in Pakistan. In importation, the collector-businessman mafia deprives the nation of billions of rupees in the form of evaded duties--Customs, Sales Tax and Federal Excise Duty, wherever applicable. These goods then remain outside the purview of income taxation as well. This is the main cause of generation of underground economy. Customs mafia is not ready to accept simple technological reforms of scanning of all the containers and baggage. The new Chairman has worked in Customs (17^th CTP, earlier entered in Civil Services in Accounts Group through 15^th CTP) and has also reportedly sold software to FBR for Customs Wing. Expectations are high that he would increase collection of Customs duties--these would automatically lead to better collection of GST, FED and income tax--through the use of modern IT technology that he employed as Chairman NADRA and which was his business after resigning from FBR."

Strangely, though expectedly, no response ever came from FBR to the proposal cited above. The exit of Chairman mentioned in above article was followed by five chairmen but till today no effort whatsoever has been made to plug the main hole from where the colossal loss of revenue is taking place on daily basis.

In its order of August 30, 2013 in SMC No.16 of 2010, SC noted:

"In order to further ascertain the correct position about the smuggling of arms and ammunition as well as evasion of the duty on different items at the Ports of Karachi and Bin Qasim, we are of the opinion that there must be a strict check and full duty should be recovered because on account of evasion of custom duty, black money is also generated, which allegedly flows inside the country particularly in the city of Karachi and is used by the accused persons in order to promote their criminal activities throughout the country".

Though the SC passed orders for strict check on ports but no action was taken as it could have dried the speed money that goes into the so-called common pool for the benefit of all officials. The viable solution is installing of radiographic scanners that use x-rays or gamma rays to provide an image of the internal contents of containers. This not only increases detection rate of contraband hidden in containers but the scanners also help to detect any secret compartments within containers.

These scanners are working successfully at two of the busiest ports of the world, Rotterdam and Singapore--we must install the same without wasting any further time. Many companies can be contacted to provide this service and they can recover the cost/profit from our revenue. The plea by FBR that it requires huge investment in buying equipment and training personnel is nothing but a flimsy excuse (in fact motivated by ulterior motives as it would end corruption). The use of radiographic scanners is necessary to counter loot and plunder of national revenues.