Lawmakers have revealed massive revenue losses running into billions of rupees after serious failures by the Federal Board of Revenue (FBR) in tax recovery, customs duty collection, and system oversight, raising fresh concerns over accountability and governance in Pakistan’s revenue machinery.
A sub-committee of the Public Accounts Committee (PAC), chaired by Shahida Akhtar Ali, was informed that the national exchequer suffered a loss of Rs. 24.15 billion due to the failure to collect withholding tax alone. Audit officials disclosed that 514 tax agents failed to deduct taxes, while violations were found across 16 FBR field formations, breaching provisions of the Income Tax Ordinance, 2001.
Committee members expressed alarm that no effective legal action had been taken against responsible officials. The PAC directed FBR to immediately recover Rs. 171.9 million, finalize pending cases worth Rs. 6.63 billion, and verify claimed recoveries of Rs. 44.4 million.
In another case, lawmakers examined losses of Rs. 25.5 million caused by non-collection of additional customs duties. Audit officials told the committee that five customs collectorates cleared imports without charging mandatory duties between July and December 2013.
PAC member Bilal Khan Mandokhail criticized the slow recovery process, stating that many defaulters were still traceable. FBR Chairman Rashid Langrial admitted challenges in recovering dues from one-time importers but assured the committee that efforts were ongoing.
The committee was also briefed on Rs. 21.3 million in losses resulting from incorrect data entries in the PRAL system, including misclassification of goods, wrong duty rates, and unauthorized PCT headings. Audit officials pointed to improper concessional duties applied on Chinese imports, particularly at the Islamabad Customs Collectorate.
Responding to criticism, the FBR chairman said, “One customs officer has already been arrested over these violations,” but PAC members rejected routine justifications such as retirement or death of responsible officers.
The PAC directed FBR to verify recoveries of Rs. 12.58 million and ensure recovery of the remaining Rs. 8.77 million, stressing that strict accountability and systemic reforms were essential to prevent future revenue leakages.
