Islamabad: A Senate Sub-Committee has expressed significant concerns over the alleged misuse of the FATA/PATA tax exemption scheme and the delayed recovery of tax dues amounting to approximately Rs800 billion. During a meeting held at Parliament House, Convener Senator Saifullah Abro criticized the Federal Board of Revenue (FBR) for its performance, citing the need for a comprehensive review of its practices and the urgency of addressing the tax collection issues.

According to Senate of Pakistan, the sub-committee’s meeting focused on the alleged tax evasion under the FATA/PATA exemption scheme, the issuance of consumption certificates, and the non-payment of tax dues by companies. Senator Abro emphasized the importance of recovering national funds and held the FBR accountable for failing to produce necessary documents before the committee. The meeting underscored the necessity of holding those responsible for financial losses accountable and ensuring timely tax recovery, especially as Pakistan seeks financial assistance from the International Monetary Fund (IMF).

The committee was informed that goods worth approximately Rs1,120 billion were imported under the tax exemption scheme, with records and details still under scrutiny. The FBR’s inability to provide complete documentation has raised suspicions and concerns regarding the protection of the national exchequer. The convener directed that a thorough review be conducted of the FBR’s performance and Sitara-i-Imtiaz nominations, emphasizing that officers who effectively recover taxes and protect public resources should be recognized.

The meeting also addressed the ongoing investigations by the Federal Investigation Agency (FIA) and stressed the importance of coordination between institutions to ensure compliance with legal requirements. The convener ordered that all necessary documentation be submitted within two days to facilitate a transparent examination of the matter and reiterated the committee’s commitment to recovering public funds and protecting national resources.