ISLAMABAD: The Federal Board of Revenue (FBR) failed to dispose of confiscated vehicles and other seized goods in a timely manner, resulting in blocked government revenue of Rs12.6 billion, according to the latest audit report of the Auditor General of Pakistan (AGP).
The audit said prolonged delays in auctioning confiscated vehicles, edible items and other valuables not only prevented the government from realising revenue but also caused a significant decline in the value and condition of the seized assets.
According to the report, the matter relates to Sections 82, 89, 169, 182 and 201 of the Customs Act, 1969, read with Rule 58(1) of the Customs Rules, 2001, and Customs General Order No. 12 of 2002, which require confiscated goods to be disposed of promptly after completion of the prescribed legal formalities.
More than 4,300 confiscation cases unresolved
The AGP said audits covering FY2015-18, FY2022-23 and FY2023-24 found that 27 FBR field offices, including the Director General Frontier Corps (FC) Peshawar and Director General Rangers Lahore, had failed to dispose of confiscated goods in 4,396 cases.
The seized items included vehicles, edible goods and other valuables, many of which remained stored in warehouses or open areas under unsuitable environmental conditions for extended periods.
According to the audit, prolonged storage resulted in the depreciation of confiscated assets, while edible goods also deteriorated, reducing their suitability for human consumption.
As a result, government revenue amounting to Rs12.6 billion remained blocked.
Recovery and legal proceedings continue
The audit observations were first raised in February 2018 and were reiterated between February and November 2024.
In its response, the FBR informed auditors that:
Rs395.41 million was under recovery.
Rs11.519 billion worth of confiscated goods was under scrutiny or awaiting auction.
Rs1.60 million remained pending adjudication.
Cases involving Rs683.98 million were pending before courts.
The Departmental Accounts Committee (DAC), during meetings held in December 2020, August 2024, December 2024 and January 2025, directed the FBR to expedite recoveries, accelerate the disposal of confiscated goods and actively pursue cases pending before adjudicating authorities and courts.
AGP urges faster disposal process
The Auditor General recommended that the FBR speed up recovery proceedings and dispose of confiscated goods without unnecessary delays to prevent further depreciation in their value.
The audit also called on the tax authority to improve storage facilities for seized goods to preserve their condition and maximise auction proceeds. It further recommended fixing responsibility on officials found accountable for the prolonged delays in disposing of confiscated assets.
