The Federal Board of Revenue (FBR) failed to recover Rs. 725.11 million withholding tax on income on the property during the financial year 2020-21, causing a substantial loss to the national exchequer.
According to a document available with the Auditor General of Pakistan (AGP), the audit for the financial year 2020-21 brought to light that 178 withholding agents of FBR in 14 field offices failed to deduct withholding tax while making payments of rent to owners of the property.
FBR did not take sufficient measures to recover the revenue lost hitherto, causing non-recovery of tax amounting to Rs. 725.11 million.
AGP also noted that the lapses in tax collection were reported to FBR from March to November 2021, to which the board replied that an amount of Rs. 0.31 million had been charged, while the recovery was awaited. For the rest amount of Rs. 724.8 million, the board had initiated legal proceedings.
Later in December 2021, the departmental accounts committee (DAC) directed FBR to recover the charged amount as well as complete the legal proceedings and report compliance by 15th January 2022.
However, AGP noted that no further progress has still been noted in this regard.
I know many people have multiple houses given on rent and pay 0 tax. Just because they file their returns from fbr officers every year. And get surety of being untouched.