A Senate Sub-Committee on Interior and Anti-Narcotics has expressed serious concern over alleged misuse of the FATA/PATA tax exemption scheme, delays in recovering billions of rupees in outstanding taxes, and the failure of several companies to provide required records.
The committee met at Parliament House under the convenorship of Saifullah Abro. Senator Umar Farooq and officials from the Interior Ministry, Federal Board of Revenue (FBR), Federal Investigation Agency (FIA), police and other departments attended and briefed the panel.
Officials told the committee that imported goods worth approximately Rs1,120 billion under the scheme were under scrutiny. Consumption certificates and related records had been identified for goods worth around Rs389 billion. Further details were required on the remaining imports, their utilisation and outstanding tax liabilities.
The committee was also informed that 223 consumption certificates had been issued to 108 companies. Members questioned why complete information on imports, factory production, utilisation of goods and tax payments was unavailable for all of them.
Abro directed the FBR, FIA and other relevant institutions to submit complete documents, determine potential revenue losses and establish responsibility for any violations of the law. He also instructed officials to prepare a separate case file containing import records, customs documents, consumption certificates, tax payments, bank statements and other relevant information.
The convenor sought clarification on the legal basis and supporting documents for approximately Rs85 billion, as well as the requirements fulfilled before the release of the imported goods. Officials explained that companies were required to deposit an amount or pay order equivalent to the value of imported goods with customs authorities before release to factories, subject to prescribed conditions.
Questioning the performance of the FBR, Abro said Pakistan was seeking loans from international financial institutions while billions of rupees in alleged tax dues remained unrecovered. He called negligence and delays in tax collection unacceptable.
He said public money would be recovered at all costs and that national resources belonged to the people. If investigations established tax evasion or financial irregularities, he said, those responsible must be identified, legal action initiated and outstanding amounts deposited into the national exchequer.
