A subcommittee of the Public Accounts Committee (PAC) revealed that gross mismanagement within the Federal Board of Revenue (FBR) had resulted in a Rs397 billion loss to the national exchequer, according to a news report.
The subcommittee, chaired by Shahida Akhtar Ali, reviewed audit reports for the fiscal years 2010, 2011, 2013, and 2014, uncovering significant lapses in tax recovery.
Audit officials disclosed that the losses stemmed from both direct and indirect taxes, as well as customs duties that went uncollected due to negligence and inefficiency within the FBR. Among the alarming findings, Rs6.5 billion worth of sales tax and Federal Excise Duty (FED) had not been recovered.
The committee was also informed that 633 individuals had either underpaid or evaded taxes, with no action taken by officials at 10 FBR offices. Despite legal provisions allowing for forced recovery, these measures were not enforced.
Further, the committee learned that Pakistan International Airlines (PIA) had collected FED on tickets but failed to transfer Rs2.5 billion to the FBR. Since PIA’s privatisation process remains incomplete, the government will now bear this liability. The committee instructed authorities to verify the recoverable amount.
The subcommittee was also informed that 514 FBR agents failed to deduct withholding tax during 2013-14, resulting in a shortfall of Rs24.15 billion. Additionally, Rs71 million had been assessed but never recovered.
An FBR member reported that Rs16 billion had been retrieved and verified, while Rs452 million remained under audit scrutiny.
