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The Federal Board of Revenue (FBR) has dismissed an Inland Revenue officer, Altaf Hussain Khurho, for negligence in investigating a massive Rs238.4 billion sales tax fraud involving M/s New Metro Footwear Co. and 12 other co-accused. The dismissal follows an internal inquiry that found serious lapses in handling the case, which was initially registered in March 2024 after intelligence reports from the Prime Minister’s Office exposed flaws in the investigation.
The disciplinary action was taken under the Civil Servants (Efficiency and Discipline) Rules, 2020, after a detailed inquiry led by Aftab Alam, Director General of International Taxes Operations. His report concluded that Khurho had failed to perform his duties with due diligence, leading to inefficiency in investigating one of the country’s biggest sales tax frauds.
An FBR official stated,
“The officer’s negligence compromised the integrity of the investigation, and accountability was necessary to restore confidence in the system.” Initially, the inquiry recommended a minor penalty, but deeper findings revealed that Khurho mishandled critical evidence and failed to take proper action, resulting in his dismissal.
The case involves fraudulent sales tax claims worth Rs197.27 million, of which Rs117.41 million has been recovered, while Rs79.86 million remains outstanding. The FBR emphasized that strict action will continue against officials found guilty of inefficiency or misconduct, especially in high-value tax evasion cases.
