ISLAMABAD, Feb 2 The Customs group of the country`s tax machinery on Monday started a formal protest by wearing black bands on duty against the recent merger of Sales Tax into the inland revenue services (IRS) as part of the World Bank funded reform project.

The Income Tax group, apparently the beneficiary of the merger, however, termed the decision as per international tax collection practices. Under the section 4 of the FBR law, the chairman enjoyed powers to shift any department from one to another group. Before1982, the Sales Tax wing was part of the Income Tax department, which was later made part of the customs group to the disappointment of the income tax cadre.

A source in the Customs department told Dawn that the group had constituted an action committee, which would work out measures for reversing the decision. The committee has already termed the establishment of IRS `unconstitutional` saying the merger of Sales Tax and Income Tax would require an amendment in the Federal Public Service Commission rules.

According to the source, the establishment of IRS should be taken into the board in council for detailed evaluation and a decision should be taken after consensus of both the groups.

The main objection linked to the merger was shrinking of the posts for senior customs officers.

Ironically, the Customs group wanted monopoly of the Sales Tax department but none of the customs officers were willing to be posted in the ST collectorates. However, it has been observed that only those officers were posted in the Sales Tax as a penalty or sideline postings.

A source in the Income Tax said that the group had shown serious concerns over formulation of `special induction rules` for the Customs and Central Excise group officers for their joining the IRS. Under the proposed rules, the Customs group officers currently posted in the ST would be given an option to join the IRS by continuing their seniority from the date of their last promotion in the parent group.