Posts of Customs Chief Collectors: FBR asked to give rationale for creation

The Finance Division has directed the Federal Board of Revenue (FBR) to give rationale behind creation of the posts of Chief Collectors of Customs, North and South and Collectors of Model Customs Collectorates (MCCs), under the Tax Administration Reform Project (TARP).
Sources told Business Recorder on Sunday that the Regulation Wing of Finance Division said it was unaware about the creation of the top posts of Chief Collectors of Customs, Karachi and Lahore under reforms, and directed the FBR to clarify certain issues pertaining to the status of Chief Collectors and Collectors of MCCs under the revamped FBR.
According to Finance Division, various collectorates have been working since decades and there has been no problem due to non-declaration of collectors as heads of departments. The same is the situation in case of commissioners of income tax.
"It has not come to our notice that when the offices of Chief Collectors in Karachi and Lahore were established?" Finance Division questioned.
With the change of nomenclature only of the Collectorates as Model Collectorates from September 2007, how they could become heads of departments in the model customs collectorates?
Another question was raised as to how these collectorates were being run before 2007. The FBR should also clarify the position about income tax side for proper examination of the case, the Finance Division added. When contacted, sources said that the posts of Chief Collectors of Customs have been introduced through Finance Bill 2007-08. It is a co-ordinating post which covers the laid down number of collectors of customs. The chief collectors have to report to the FBR Member, Customs.
Similarly, Federal Board of Revenue Act was also cleared through the Finance Bill 2007-08. Under the rules of business, it is necessary to consult the relevant ministry or division pertaining to new posts to avoid audit objections. For enforcement of rules, the permission has been sought from the relevant ministry.
Therefore, there is nothing unusual about the observations of the Finance Division on Chief Collectors posts. The Division has already cleared posts of Directors-General of Large Taxpayer Units Karachi and Lahore and DGs of Regional Tax Offices. The Division has been engaged in the consultation process with the FBR to fulfil legal formalities.
The FBR Chairman has full powers to re-designate senior tax officials and FBR powers have been considerably enhanced through implementation of FBR Rules 2007.
Sources said that total number of reporting officers to the FBR Member Customs has been increased following creation of posts of Chief Collectors of Customs.