The Federal Board of Revenue (FBR) has initiated formal proceedings against individuals suspected of involvement in the unauthorized leak of a sensitive report concerning the Faceless Customs Assessment (FCA) system. The decision comes after widespread media coverage suggested that the FCA had contributed to revenue losses of nearly Rs100 billion, sparking controversy across Pakistan’s financial and trade sectors.
In a press briefing held on Tuesday, the Chairman FBR, accompanied by senior customs officials, categorically denied the claims. He clarified that the report, which formed the basis of the news story, was not a conclusive finding but an initial audit observation compiled by the Directorate General of Post Clearance Audit (PCA). He emphasized that the figures cited in the media were misleading and had been taken out of context.
According to FBR’s leadership, the FCA system, launched in December 2024, was developed to strengthen transparency, minimize collusion between traders and customs officers, and modernize assessment processes in line with global standards. Far from causing financial loss, officials stated that revenue collection has surged by nearly 30 percent since its introduction, while contravention cases against non-compliant traders have increased fourfold. These results, they argued, directly contradict the allegations linked to the leaked audit note.
The FBR also addressed accusations regarding undervaluation of high-end imported vehicles. Evidence was presented showing that duties and taxes on such vehicles were calculated strictly according to official valuation tables. In one case highlighted by the media, a Toyota Land Cruiser was reported as undervalued, but customs officials demonstrated that the vehicle had been assessed at Rs10.05 million with Rs47.2 million in duties and taxes properly collected. Similarly, restricted goods were cleared only after all regulatory conditions outlined in the import policy order were fulfilled.
Responding to claims about clearance delays under FCA, officials pointed out that such bottlenecks were largely due to external issues like port congestion and not the system itself. The Chairman reiterated that FCA had been instrumental in streamlining processes and reducing opportunities for discretionary interference in customs assessments.
In addition, the FBR leadership strongly criticized the misuse of preliminary audit documents in media reporting, calling it irresponsible and damaging to institutional credibility. A special committee has now been formed to identify those responsible for leaking the audit note and to initiate disciplinary action against them.
The Chairman concluded by reaffirming FBR’s commitment to digital transformation. He stressed that FCA remains a cornerstone of the agency’s reform agenda, designed to boost efficiency and compliance in customs operations. He added that misleading narratives would not derail the ongoing modernization drive, which is essential for sustaining revenue growth and protecting the integrity of Pakistan’s trade and taxation system.
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