FBR Fails to Collect Billions of Rupees in Advance Tax

The Federal Board of Revenue (FBR) failed to collect Rs. 3.295 billion due to the non-collection of advance tax from retailers and distributors in the fiscal year 2020–21. This was revealed in the audit documents of the Auditor General of Pakistan (AGP).

The document states that in 12 field offices of the FBR, 112 prescribed persons did not collect advance tax from retailers and distributors at the time of sale.

Furthermore, as per the audit documents, the department did not take remedial action to recover the amount, thus costing the national exchequer a hefty sum.

The lapses were reported to the concerned department during March and November 2021, to which the department responded that an amount of Rs. 5.72 million had been charged but not recovered, while legal proceedings for Rs. 3.389 billion were initiated but not yet finalized by the department.

The audit document further reveals that the Departmental Accounts Committee (DAC) in its meeting held in December 2021 directed the concerned department to recover the charged amount, complete the legal proceedings, and report compliance by January 15, 2022. However, no progress was reported till the finalization of the audit report.

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