ISLAMABAD: The Federal Board of Revenue (FBR) has been unable to recover trillions of rupees in income tax, according to sources, exposing significant gaps in the tax collection system.
Despite issuing over 3,000 notices, the FBR has failed to recover Rs. 80 billion. A further Rs. 104 billion was lost due to incorrect income calculations for 1,173 taxpayers. The FBR lacks final deadlines for multiple recoveries, leaving Rs. 41 billion in withholding tax unpaid by 519 tax defaulters on services, supplies, and contracts.
Sources revealed that the FBR has taken no action against tax defaulters involved in withholding tax evasion or those engaged in tax refund fraud.
Additionally, the failure to impose late payment default surcharges on 2,604 tax defaulters has resulted in a loss of Rs. 11 billion.
The report also pointed out that non-payment of income tax by retailers, wholesalers, and distributors led to a further loss of Rs. 9 billion. The Auditor General’s report has consistently highlighted these non-recoveries, underscoring the FBR’s poor performance in addressing these financial shortfalls.
