A recent revelation has exposed a staggering loss of Rs397 billion to Pakistan’s national treasury, traced directly to the Federal Board of Revenue (FBR). The shocking findings came to light during a meeting of the Public Accounts Committee (PAC) subcommittee, chaired by Shahida Akhtar Ali. Lawmakers were left astounded as audit reports detailed significant financial mismanagement and failures within the FBR.
According to the audit, the FBR failed to collect Rs6.5 billion in sales tax and Federal Excise Duty (FED). However, the most alarming discovery was that 633 tax evaders went unpunished across 10 FBR offices. Despite having legal authority, the FBR did not issue show-cause notices or take action to recover the dues from these evaders.
Another major issue came from Pakistan International Airlines (PIA), which collected Rs2.5 billion in FED on airline tickets but never handed it over to the government. With PIA’s privatization still pending, this massive financial gap now becomes the responsibility of the government.
Additionally, more than 500 FBR agents failed to deduct mandatory withholding taxes during the 2013–14 fiscal year, resulting in a loss of Rs24.15 billion. Furthermore, Rs71 million in assessed taxes simply vanished without explanation or recovery.
FBR representatives attempted to defend the organization, stating that Rs16 billion had been recovered and verified, while Rs452 million was still under audit review. However, the PAC members were unconvinced, criticizing the FBR as a “system riddled with incompetence.” They called for accountability at all levels and immediate reforms to prevent further financial losses.
This scandal has sparked widespread calls for a full-scale inquiry into the FBR’s operations and urgent reforms to safeguard public funds from further mismanagement.
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