The Federal Board of Revenue (FBR) has allowed the customs officials to take rewards under the old rules in big cases of detection/seizure made before the announcement of the Unified Reward Rules-2006. In this regard, the FBR has issued a circular on the unified reward rules-2006 here on Tuesday. Sources told Business Recorder that a number of reward cases of customs officials are pending under the old rules which were replaced with the Unified Reward Rules-2006.
The amount of reward to customs officials was comparatively high under the rescinded rules as compared to the Unified Reward Rules-2006. In 2006 a similar reward scheme was notified for customs and sales tax officials. Due to some legal problems, the reward cases of some customs officials under the old rules are still pending.
These cases were framed when the old rules were not rescinded by the FBR. Therefore, the FBR on Tuesday announced that the reward cases where the detection/seizure took place prior to the enforcement of Unified Reward Rules-2006, are to be processed/dealt with in terms of old rules prevalent at the relevant time.
According to sources, the reward rules for customs should be separated from the reward rules of sales tax and income tax as the procedure for detection and seizure is entirely different for the customs officials. In case of customs department, there is always threat to the life of the customs officials and their families because of anti-smuggling activities.
The anti-smuggling activities are mostly information-based and there is a threat to the informer as well as the customs official involved in the detection and seizure operation. Under the anti-smuggling measures, customs officials are always threatened by the smugglers for taking action against the smugglers. On the other hand, the detection of sales tax evasion is entirely different as compared to customs department. The nature of detections made by the officials of Inland Revenue cannot be compared with the customs officials directly fighting with the smugglers.
There is a risk to the life to the customs officials during anti-smuggling operations and even after seizures of smuggled goods there is always threat to the life of the customs officials. At the same time, there are direct clashes between the customs officials and smugglers and their amount of reward should be substantially more as compared to the officials of the IR. The customs officials have to operate like police or law enforcement agencies to conduct operations against the smugglers. Whereas, the nature of detection of cases on sales tax side or tax frauds is entirely different as compared to customs officials.
Therefore, the existing Unified Reward Rules-2006 must have separate rules for the customs officials keeping in view their practical difficulties and problems being faced during anti-smuggling operations, sources added. According to the FBR circular issued here on Tuesday, in supersession of Board's Circular of even number dated June 29, 2007 on the above subject, the following clarification is circulated for information and compliance by the concerned authorities:
"The reward cases, where the detection/seizure took place prior to the enforcement of Unified Reward Rules-2006, are to be processed or dealt with in terms of old rules prevalent at the relevant time. Consequently, the proceedings initiated under the law, then in force, have to be completed under the old laws notwithstanding the fact that the payment of reward had become due after 5th December, 2006." This issues in the light of advice of Ministry of Law, Justice and Parliamentary Affairs contained in their OM No 950/2009-Law-I dated 26.02.2011 and with the approval of Secretary Revenue Division/Chairman, FBR, circular added.
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