Tax evasion: panel seeks recovery of Rs1.12tr

The meeting reviewed the issuance of consumption certificates for imported goods, alleged tax evasion, non-payment of dues, investigations and the performance of relevant departments. Senator Umar Farooq and officials from the Interior Ministry, FBR, FIA, police and other departments attended the meeting and briefed the Committee.

During the briefing, officials informed the committee that imported goods worth approximately Rs1,120 billion under the FATA/PATA tax exemption scheme were under scrutiny. Consumption certificates and related records had been identified for goods worth around Rs389 billion, while further details were required regarding the remaining imports, their utilisation and outstanding tax liabilities.

The body was also informed that 223 consumption certificates had been issued to 108 companies. It questioned why complete information about imports, factory production, utilisation of goods and tax payments was unavailable for all companies.

Senator Abro questioned the performance of the FBR, stating that Pakistan was seeking loans from international financial institutions while billions of rupees in alleged tax dues remained unrecovered. He said negligence and delays in collecting taxes were unacceptable.

He declared that public money would be recovered at all costs, adding that national resources belonged to the people and no compromise would be made in protecting them. If investigations established tax evasion or financial irregularities, those responsible must be identified, legal action initiated and outstanding amounts deposited into the national exchequer, he said.

The convenor directed officials to prepare a separate case file containing import records, customs documents, consumption certificates, tax payments, bank statements and other relevant information. He also sought clarification about the legal basis and supporting documents concerning approximately Rs85 billion and the requirements fulfilled before the release of imported goods.

Officials explained that companies were required to deposit an amount or pay order equivalent to the value of imported goods with customs authorities before their release to factories, subject to prescribed conditions.