ISLAMABAD: The federal government has formed a high-level committee to evaluate 24 tax tribunal members hired from the private sector last year, as a massive tax litigation backlog continues to grow despite their monthly salaries of Rs2.6 million.
The four-member panel is tasked with assessing the efficiency and conduct of the Appellate Tribunal Inland Revenue members. It will recommend to the government whether the members should be retained, have their tenures extended, or be fired on grounds of inefficiency or misconduct.
The appointments were made under the 2024 recruitment framework on market-based salaries, along with perks and privileges, to speed up the disposal of tax disputes and reduce the mounting backlog.
However, pending tax cases have continued to rise, reaching around 68,000 despite the expansion in tribunal strength.
Four-member body tasked with assessing 24 appointees hired on Rs2.6m salary each
Official estimates show the tribunals are disposing of nearly 1,000 cases a month. At the current pace, it would take between five and six years to clear the existing backlog, assuming no fresh appeals are filed.
Of the total pending cases, around 60,000 relate to Inland Revenue Service matters, and about 8,000 involve customs disputes. Punjab accounts for nearly 76 per cent of the pendency, with Lahore carrying the largest share of the caseload.
The review follows a report submitted in May by a task force set up by Prime Minister Shehbaz Sharif to examine backlogs in superior courts and specialised tribunals. The report highlighted the performance of tax tribunals, prompting the government to order an independent assessment.
The newly constituted committee comprises retired justices Athar Saeed and Tariq Abbasi; Telecommunication Appellate Tribunal Chairman and retired Inland Revenue Service officer Shad M. Khan; and chartered accountant Ghazi Akhtar Khan.
The committee will examine whether the recruitment of private-sector members on market-based salaries has resulted in faster disposal of tax disputes or whether administrative and operational shortcomings continue to hamper the tribunal’s performance.
The decision holds significance as there is an existing mechanism to manage tax litigation. The Federal Board of Revenue’s legal wing, with about 50 staff members, including a legal member, manages tax cases. Two chairmen oversee the tribunal’s judicial and administrative functions.
The Appellate Tribunal Inland Revenue is the highest appellate forum for income tax, sales tax, and federal excise disputes following the commissioner’s appeals, playing a crucial role in tax dispute resolution.
Published in Dawn, July 18th, 2026
