"This delay in posting, according to one senior tax official, might be because of the friction between the DMG and Tax Group." — File Photo

ISLAMABAD: The government is still indecisive to appoint a member Inland Revenue System (IRS), a post that monitors and execute over 89 per cent of the total revenue collection which fell vacant following major reshuffling of top tax officials last week. The post is responsible for collection of Rs1,431 billion by June 30, 2011. However, a member for an 11 per cent revenue (customs) collection has been appointed without any delay.

This delay in posting, according to one senior tax official, might be because of the friction between the district management Group (DMG) and Tax Group that has widened following the appointments of chairmen from the DMG in past years.

The delay has hampered the working of tax collection. “There is a complete chaos and confusion at all levels, in the headquarters and field formations. Files are piling up in offices as there is no one to dispose it of,” the official said.

IRS member deals with income tax, general sales tax and federal excise duty under the World Bank backed reformed project of tax machinery. The delay in appointing the member for the past five days could have a disastrous impact on revenue collection at a time when the FBR struggles to plug loopholes in the tax machinery to generate a few additional billions.

Salman Siddiq, a DMG officer was appointed chairman FBR last month replacing his predecessor Sohail Ahmad who too was from DMG, and had reshuffled the top tax officials in a mid fiscal year sending fears of uncertainty in the board as well as across the field formations.

Five senior tax officials Shahid Hussain Asad, Khalid Aziz Bant, Israr Rauf, Aqeel Usman and Khawar Khursheed Bhutt are getting salaries without any portfolios, the official said.

The FBR chairman was approached by Dawn for a feedback on delay in appointing a member IRS but he did not respond.

IMF senior officials, Masood Ahmed, Director of the Middle East and Central Asia Department of the International Monetary Fund along with his Assistant Director Adnan Mazarei are currently visiting Pakistan to get a direct feedback on the economic reforms including power sector and expansion of the narrow tax base.

Another tax official said it could be possible that the FBR chairman might be looking for a right person for the slot. However, he did not rule out internal politics over the appointment of such a high post.

Similarly, there is tension between the customs officials and income tax officials over the establishment of the IRS under the World Bank backed tax reforms project. As a result of these reforms, the two tax groups are fighting over the ownership of the sales tax and federal excise duty collection. This fighting is only for getting maximum share in postings by both groups.