FBR moves against officials for regularising smuggled vehicles

ISLAMABAD: The Federal Board of Revenue (FBR) has initiated action against its officers accused of facilitating the regularisation of smuggled vehicles through manipulation of its digital auction system.

According to an FBR statement, fraud was detected in the “auction module” of the WeBOC system, where details of 103 vehicles were uploaded using fake user IDs. Among them, 43 smuggled vehicles were shown as legally cleared in official records.

The statement said that a deputy collector and an assistant collector were suspended on July 9 after their login credentials were found to have been misused.

The FBR also requested the formation of a joint investigation team (JIT) comprising officials from the FIA, Customs and intelligence agencies.

An FIR has since been registered, and the officers involved have been taken into custody.

The FBR stressed that its ongoing reform agenda prioritises transparency, accountability and integrity, with zero tolerance for corruption.

It said that the profiling of officers based on integrity and strict disciplinary or criminal action, where necessary, form the cornerstone of its internal monitoring.

The auction module was introduced in August 2021 to curb misuse of auctioned vehicle documents and enable motor registration authorities (MRAs) to verify auction details online.

Despite these reforms, the FBR received complaints in July 2025 about the module’s misuse. Of the 1,909 vehicles uploaded in the system since its launch, 103 were found to be fraudulently entered.

Further investigations revealed that the fraud was part of a wider criminal network involving MRA officials and car dealers.

In view of the seriousness of the case, the FBR decided that internal disciplinary measures alone were insufficient and referred the matter for criminal proceedings.

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Following the FBR’s formal complaint on July 10, the JIT began its probe, which culminated in the FIA registering an FIR on August 28 against those involved in regularising smuggled vehicles.

The FIA has now arrested the implicated officers.

The statement added that Customs Enforcement has so far registered seven FIRs and arrested 13 individuals in connection with the scandal.

The FBR said the crackdown was intended to send a clear message that criminal elements within the institution would be exposed and dealt with under the law.