Dozens of sales tax and income tax officers in Karachi have failed to meet the required professional standards in an Inland Revenue examination, with only four out of 139 officers found competent to independently handle legal decisions in both tax categories.
According to details, the examination was conducted to assess the professional competence of Grade 17 and above officers of the Inland Revenue Service in Karachi, particularly their understanding of tax laws and legal proceedings.
The results revealed significant shortcomings in the officers’ professional capabilities, raising serious concerns about the effectiveness of tax administration and enforcement.
A total of 150 sales tax officers and 143 income tax officers participated in the examination. Dozens failed to meet the required standards, while the assessment report also identified quantifiable tax-related errors amounting to Rs534.9 million.
According to the report, the average score in the sales tax examination was just 26.4 per cent, with not a single officer securing 60 per cent marks. Furthermore, 47 officers scored below 20 per cent.
Similarly, the average performance in the income tax examination stood at 33.3 per cent. Only four officers managed to secure 60 per cent or higher marks, while 16 officers scored below 20 per cent.
The assessment report further revealed that only 15 out of 150 sales tax officers were considered competent to independently issue legally valid tax orders under their signatures.
In the income tax category, only 14 officers were found capable of independently deciding tax cases.
Overall, among 139 officers assessed for competence across both categories, only four were found qualified to independently make legal decisions involving both sales tax and income tax matters.
The report also evaluated officers’ ability to effectively review tax orders prepared by other officials and identify legal errors.
In this category, only 21 sales tax officers and 28 income tax officers demonstrated adequate reviewing capabilities. Just eight officers were found competent to conduct effective legal scrutiny in both tax categories.
More concerningly, among 56 sales tax commissioners and additional commissioners, only four demonstrated effective vetting capabilities.
Similarly, out of 53 income tax commissioners and additional commissioners, only six officers were found capable of effectively reviewing tax orders.
The report further disclosed that 31 out of 139 officers possessed only desk-level competence or lower in both tax categories.
Additionally, 14 officers were assessed as requiring comprehensive training before being assigned any casework.
The findings highlight substantial gaps in professional knowledge, legal understanding and decision-making capabilities among Inland Revenue officers in Karachi, raising concerns about the quality of tax assessments, legal orders and enforcement procedures.
The assessment also underscores the need for specialised training, stronger professional evaluation mechanisms and improved accountability within the tax administration system.
