PAC Probes Rs312 Billion Tax Irregularity as FBR Faces Transparency Concerns

The Public Accounts Committee (PAC) has sent a Rs312 billion sales tax irregularity case back to the Federal Board of Revenue’s (FBR) Departmental Audit Committee (DAC) for further inquiry, as per a Business Recorder (BR) report.

During a session led by Junaid Akbar Khan, PAC reviewed audit objections concerning FBR’s financial oversight, amounting to a staggering Rs807 billion, raising concerns over the authority’s ability to safeguard national revenues.

Senator Afnanullah Khan strongly criticized FBR for its failure to detect an Rs803 billion tax anomaly, questioning how such a massive oversight could go unnoticed.

Responding to inquiries, FBR Chairman Rashid Mahmood Langrial acknowledged the ongoing fight against corruption but avoided discussing past financial scandals. He confirmed that a Rs312 billion tax fraud attempt had been blocked, whereas another case involving Rs60.4 million had slipped through the cracks.

Audit officials further revealed that FBR has consistently resisted oversight of its Common Pool Fund (CPF), arguing that the fund is meant for low-grade employee welfare and, therefore, outside external audit jurisdiction.

PAC member Omar Ayub dismissed this justification, insisting that FBR’s financial affairs must be transparent, given its status as a state institution. The committee ordered the formulation of clear audit guidelines for the CPF, which has never been audited since its establishment.

Additionally, PAC members highlighted that 15 federal ministries currently lack Chief Financial Officers (CFOs) and have requested a detailed report on the issue.