Chairman of the Federal Board of Revenue (FBR) Rashid Mahmood Langrial has rejected an internal audit report purporting that the faceless customs system in Pakistan had led to a loss of one hundred billion rupees to the Federal exchequer. The chairman dismissed the allegations as false and alleged that some officers and interested parties were plotting to frustrate the reform agenda.
Rejection of Audit Findings
In an interview with the media, Langrial claimed that the report’s findings were unfounded. He emphasized that the faceless customs system will not be reversed, as its main aim is to control corruption and bribery. The chairman characterized the report leakage before submission as a serious matter and affirmed that an investigation has been initiated to identify the culprits.
Purpose of the Faceless Customs System
According to Langrial, the new system was being implemented to stop the culture of political influence and manipulation at the office of the officers. He pointed out that misdeclarations were frequent under the previous manual clearance system due to staff collusion. The faceless system, on the contrary, has 45 officers who act as one in a single hall, and colluding becomes much harder.
Resistance and Challenges
Accepting internal disparities, Langrial also took into consideration that the new system had disrupted vested interests. He has observed that corruption lines have been limited, which has made many people upset; yet, he admitted that bribery has not been completely eradicated. He promised to implement consistent reforms to overcome weaknesses and enhance transparency.
Action Against Misconduct
Customs officials confirmed that disciplinary measures would be taken against officers who have been involved in unlawful vehicle clearances. They denied revenue losses, citing instances where a Land Cruiser was cleared, resulting in a revenue collection of Rs 47.2 million in duties and taxes. Authorities further noted that the total amount of revenue that is being collected has been enhanced by the new system.
System’s Objective and World Bank Support
The World Bank had recommended the introduction of a faceless customs mechanism to enhance trade facilitation, rather than necessarily increase revenues. Officials explained that the internal audit was intended to identify weaknesses in the system, rather than losses. Since committees have been established to ensure the provision of extra protection against hacking and hold culpable those involved in the leakage of the so-called false report.
Future Reforms
Chairman Langrial promised that reforms in FBR will continue. He affirmed that the process of assessment would be further reinforced, a new cadre of customs assessment would be introduced, and the cost of demurrage has already been reduced. In the assurance, he promised that the manual clearance system would not be reintroduced, and they had upgraded the faceless model to be more efficient and transparent.
Conclusion
The FBR has thus reiterated its modernization and reform agenda by rejecting the audit’s assertions. The challenges remain, but the faceless customs system is being placed at the core of Pakistan’s trade facilitation strategy, and further improvements are likely to occur in the coming months.
