FBR issues strict warning over unauthorized spending by tax and customs offices
The new FBR budget rules apply to all Inland Revenue and Customs offices requesting recurrent budget funds for the fiscal year 2026-27.
According to the FBR, the measures are aimed at improving financial discipline and ensuring public money is spent according to approved laws and regulations.
Officials said heads of Inland Revenue and Customs offices will be personally responsible for making sure budgets are used correctly.
The FBR stressed that all expenditures must comply with the Public Finance Management Act, 2019, General Financial Rules, Financial Regulations, Treasury Rules and other directives issued by the Board.
The decision follows a review of the SAP Budget Execution Report for the fiscal year 2025-26.
The report found that several Inland Revenue and Customs offices had made unauthorized payments and exceeded their approved budget allocations under different accounts.
Under the revised FBR spending rules, heads of departments, controlling officers and Drawing and Disbursing Officers will be held personally accountable if financial regulations are violated.
The Board warned that disciplinary action may also be taken under the Efficiency and Discipline Rules.
Read Also:Pakistan’s auto sales surge 40% as car market stages strong comeback
The FBR spending rules also state that any office responsible for unauthorized expenditures will not receive additional funds or budget reappropriation until excess payments are adjusted or recovered.
To strengthen oversight, the FBR has directed all field formations to establish an effective monthly monitoring system.
The system must review original budget allocations, approved reappropriations, surrendered funds, supplementary grants, monthly and cumulative expenditures, and the remaining available budget before reports are submitted.
Officials said the updated FBR budget rules and FBR spending rules are designed to improve transparency, prevent budget overruns and ensure better financial management across Inland Revenue and Customs offices.
