FBR Is Hiding Tax Records: Senator

Senator Dilawar Khan on Monday accused the Federal Board of Revenue (FBR) of withholding tax records from Parliament.

He said it was the first time in Pakistan’s history that the tax authority had refused to disclose requested data completely.

Speaking during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saifullah Abro, Dilawar Khan raised serious concerns over consumption certificates issued to the ghee and steel industries under tax relief schemes for the former FATA/PATA regions.

He alleged that products declared as manufactured and consumed in the tax-exempt areas were instead used in cities such as Lahore, Gujranwala, Faisalabad, and Sialkot, allowing businesses to benefit from tax exemptions they didn’t deserve.

FBR officials told the committee that complete tax return and payment data for the 2025-26 fiscal year would only be available after July 18. They requested additional time to compile the information, and the committee granted the FBR until July 20-22 to submit the complete data.

The officials also informed lawmakers that detailed information on tobacco production, documented and undocumented manufacturing, and products outside the tax net would be presented at the next meeting.

Committee members questioned the alleged misuse of tax incentives for the former FATA/PATA regions, particularly in the textile sector.

Senator Saifullah Abro said it was difficult to understand how Rs. 154 billion worth of imported textile products could have been consumed in the tax-exempt areas.

FBR officials said several businesses had obtained stay orders from the Peshawar High Court to prevent the encashment of pay orders, and the court had directed FBR to hear the affected parties before taking further action.

Senator Talha Mahmood also questioned the absence of consumption certificates for Rs. 62 billion worth of imported tea.

The committee directed the FBR to explore a legal mechanism to provide Parliament with the requested information without violating taxpayer confidentiality.