ISLAMABAD:
A subcommittee of the Public Accounts Committee (PAC) was left stunned on Friday after uncovering gross mismanagement within the Federal Board of Revenue (FBR), which resulted in a staggering Rs397 billion loss to the national exchequer.
The meeting of the subcommittee, chaired by its convener Shahida Akhtar Ali, was informed that the losses stemmed from the non-recovery of direct and indirect taxes as well as customs duties, due to negligence and inefficiency within the FBR.
The subcommittee reviewed audit reports of the FBR for fiscal years 2010, 2011, 2013, and 2014. Audit officials disclosed alarming lapses, pointing out that Rs6.5 billion worth of sales tax and Federal Excise Duty (FED) had remained uncollected.
They revealed that 633 individuals had either underpaid or evaded taxes, yet officials at 10 FBR offices failed to take action against them. Moreover, despite the presence of legal provisions allowing for forced recovery without show-cause notices, these measures were not implemented.
It was further disclosed that the Pakistan International Airlines (PIA) had collected FED on tickets but failed to transfer Rs2.5 billion to the FBR. Officials added that, since PIA’s privatisation remains incomplete, the government would now bear this liability. The committee directed authorities to verify the recoverable amount.
The meeting was informed that 514 FBR agents did not deduct withholding tax during 2013-14, resulting in a shortfall of Rs24.15 billion.
Additionally, the subcommittee was apprised that Rs71 million was assessed but never recovered.
An FBR member informed the subcommittee that Rs16 billion had been retrieved and verified, while Rs452 million remained under audit scrutiny.
