ISLAMABAD: As budget preparation for 2009-10 is in full swing, top members of the Federal Board of Revenue (FBR) are going to apply for leave in protest against appointment of new Chairman Sohail Ahmed, a grade 21 officer, who belongs to the District Management Group (DMG).

Three members, who have discussed the issue of getting leave in these crucial days, are Member Direct Taxes Irfan Nadeem, Member Tax Policy Naobahar Afzal Kiani and Member Fiscal Research Mumtaz Haider Rizvi.

Interestingly, Adviser to FBR Chairman Abdul Wadood is in grade 22, belongs to the Customs group and is senior to the new chairman. There are many officers in the FBR in grade 20 who belong to sixth commoners while the newly-appointed chairman belongs to seventh commoners. There are many other officers, who are senior to the newly appointed chairman. More than a dozen high-ranking officials in the FBR from all major cities separately contacted this scribe on Friday and said that tax collection was a practical job where the motivated machinery could perform. They were quite disappointed with the appointment of the new chairman from outside, saying that three senior members were planning to get leave because they could not work under a junior officer.

Tax authorities are also perturbed about the government’s decision for giving another high post of Secretary Revenue Division to existing Secretary Finance Salman Siddiq, saying that this kind of arrangement was tantamount to compromising their autonomy which they got after negotiations of several years.

When Adviser to the Prime Minister on Finance Shaukat Tarin was asked about the three FBR members applying for leave here on Friday, he confirmed that the three members had discussed about leave but they were told not to do so.

He said that the new FBR chairman possessed a lot of qualities and is a dynamic person who can bring change in this department.

Answering another query about giving additional charge of Secretary Revenue Division to existing Secretary Finance, Tarin, said it was a temporary arrangement and the government would appoint a separate Secretary Revenue Division. “We will separate Secretary Revenue Division and Chairman FBR office because the tax policy and operation are two different sides,” he said and added that the experience showed that in case of one person holding two offices, he always focused on the operation side while comprising the policy formulation side.

Official sources said that the newly appointed FBR chairman will assume his charge by next week probably on May 18, 2009. He also enjoys having reputation of an honest officer in the bureaucracy. Earlier, he also served as Finance Secretary in Punjab and currently he was serving in the federal finance ministry as additional secretary.

FBR Chairman Ahmed Waqar is going to retire today (Saturday). Earlier, there were discussions about his extension but it could not be done because of massive revenue shortfall being faced by the FBR in the ongoing fiscal year as well as tax authorities’ alleged effort to harass one of leading multinational by issuing order of its factory closure which was at the advance stage to expand its operation by investing $250 million in Pakistan.

This correspondent tried several times on the mobile phone of the outgoing chairman but he did not pick up his phone till filing of this report. However, Member Direct Taxes, Irfan Nadeem, confirmed to The News on Friday that he was planning to apply for leave but he had not so far formally done that. The adviser to the PM on finance would probably visit the FBR today (Saturday) where he might talk to him for getting leave.