Senate chair turns heat on the tax agency
Islamabad’s Senate sub-committee that handles interior and anti-narcotics matters has put the Federal Board of Revenue (FBR)—the federal tax collector—under intense scrutiny. Chair Senator Saifullah Abro charged that the agency was covering for people tied to graft and cautioned that fines, plus money-laundering proceedings, could follow. He also claimed the finance minister did not grasp events inside his own portfolio.
Lawmakers centred on claims of unpaid tax and abuse of relief once available in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), later merged into Khyber Pakhtunkhwa. They challenged how files were kept and how unpaid sums were chased, citing unfinished recovery work near Rs800 billion.
What the exemption import files show
Cargo cleared under the tribal relief window, valued near Rs1,120 billion, is being rechecked. Traceable papers and consumption certificates—documents meant to prove factory use of duty-relieved goods—cover about Rs389 billion; the balance still leaves open questions on unpaid tax. Officials said 108 firms hold 223 such certificates. Members asked why full trails on arrivals, factory use, output and payments were absent. Abro also sought papers around roughly Rs85 billion and whether legal steps came before release against those certificates.
Rules tied to a 2021 statutory regulatory order (SRO) required firms to lodge a deposit or pay order matching import value with customs before factories took delivery. Utility bills, bank statements, commercial files and staffing lists were also needed for certificates. The panel told the FBR to hand over certificates and full files for 20 large firms already named, plus related correspondence, explanations where no objection was raised, and verification notes inside two days.
Notices, court petitions and liability range
An FBR officer said statute allows document checks and audits of firms suspected of fraud, with any proven dues collected under the law. Five hundred twelve companies received notices. Some replied fully; others only in part. Mail to 58 firms bounced or was refused. Thirty-five petitions sit at the Peshawar High Court, and 174 beneficiaries asked judges to restrain the inquiry. Abro worried that gaps in paperwork and litigation could stall the probe, and he ordered lists of firms, owners, business lines, notices and pending cases, urging the FBR to appear in court with solid evidence.
Members discussed liabilities and penalties in a Rs400 billion to Rs500 billion band, stressing that recoverable totals still depend on record checks and legal review. The Federal Investigation Agency (FIA), which handles major financial crime, is also examining imports, certificates, firm activity and tax exposure. Abro pressed the FIA and FBR to align, recover unpaid tax and penalties, and pursue criminal charges against non-compliant firms or officials where evidence warrants it.
Roughly 20 import lines from the past six months, involving about Rs65 billion, 20 goods declarations and 19 factories, were flagged for factory and import file checks to confirm lawful use and certificate compliance.
Timeline: what has happened so far
- 2021: An SRO sets deposit and paperwork rules for consumption certificates under the tribal relief scheme.
- Past six months: About 20 import lines near Rs65 billion, linked to 19 factories, come under review.
- Within two days of the hearing: Outstanding FBR records and verification details are due.
- 9 November 2026: A comprehensive brief, plus a deeper note on five key firms, must be ready.
- 12 November 2026: Related proceedings are scheduled at the Peshawar High Court.
The panel also said Sitara-i-Imtiaz nomination lists for FBR officers should be weighed again against proven work protecting public money, blocking evasion and lifting recoveries. On a separate point, it ordered ownership and management checks—backed by documents, not assumptions—on firms bringing in edible oil, ghee, steel, foodstuffs, polymers and tea, including possible ties to court petitions.
Aasan alfaaz mein
Senate ki committee ne FBR se poocha ke qabaeli ilaqon ke tax exemption mein kitna paisa nahi wasool hua. Senator Abro ne kaha ke agency kuch ghalat logon ka saath de rahi hai aur money laundering ke cases bhi ho sakte hain. Lagbhag Rs1,120 arab ke import maal aur certificates check ho rahe hain. Agar tax wasool hota hai to khazane ko faida ho sakta hai; warna inquiry aur adalatain chalti rahengi.
