The Federal Board of Revenue (FBR) has announced that in pursuit of transparency, accountability, and institutional integrity, it has taken action against officers found involved in illegally regularizing smuggled vehicles.
In a statement, the tax body said a key pillar of its ongoing reforms was the establishment of internal checks and a policy of zero tolerance towards corrupt practices. This includes profiling of FBR’s workforce based on integrity and initiating disciplinary and criminal action where needed.
It recalled that to strengthen control mechanisms and prevent the misuse of auctioned vehicles, it had introduced in August 2021 the ‘Auction Module’ in its WeBOC system. The system aimed to address the issue of multiple vehicles being registered against documents issued by Customs after the auction of confiscated smuggled vehicles. Through this module, Motor Registration Authorities (MRAs) were enabled to verify auctioned vehicle details online before registration, significantly reducing reliance on paper-based manual verifications. The goal was to both strengthen institutional controls and facilitate legitimate buyers.
However, despite these reforms, reports emerged in July 2025 regarding misuse of the aforementioned Auction Module. In response, FBR immediately initiated an inquiry, noting details of 1,909 vehicles had been uploaded into the system. Upon detailed scrutiny, it found that 103 of these vehicles had been fraudulently uploaded using fake user identities. MRAs had already registered 43 out of these 103 smuggled vehicles, effectively granting them an appearance of legal clearance.
Based on a digital audit and internal investigations, FBR identified the user IDs through which the fraud was committed. As a result, July 9, FBR suspended one Deputy Collector and one Assistant Collector whose credentials had been misused in the commission of this crime.
The investigation further revealed that this was part of a wider criminal racket involving officials from MRAs and car dealers. Recognizing the gravity of the issue, FBR determined that the matter warranted action beyond internal disciplinary proceedings. Accordingly, a formal request by FBR was made on July 9 for the constitution of a Joint Investigation Committee, comprising senior officers from the FIA, Customs, and Intelligence Agencies. The JIT was tasked with a comprehensive probe into the scam, including the manipulation of the Customs digital system.
Following FBR’s formal complaint to FIA, the JIT commenced its investigation. As a result, on Aug. 28, the FIA lodged an FIR against already identified officers, after being found involved in fraudulently legalizing smuggled vehicles. On Sept. 3, these individuals were formally arrested by FIA. It is also pertinent to mention that Customs Enforcement has so far lodged seven FIRs and arrested 13 individuals in connection with this broader scam.
This action sends a clear and firm signal that the criminal elements within the organization will be identified, exposed, and proceeded against in accordance with the law, said the FBR, adding it remains fully committed to holding its officers accountable and ensuring that the integrity of public service is upheld at all levels and at all costs.