ISLAMABAD: The Public Accounts Committee (PAC) has referred a sales tax irregularity amounting to Rs312 billion back to the Federal Board of Revenue’s (FBR) Departmental Audit Committee (DAC) for further investigation.
During a meeting chaired by Junaid Akbar Khan, the PAC reviewed audit objections related to FBR, totaling Rs807 billion, and expressed concerns over the revenue board’s ability to safeguard public funds.
Senator Afnanullah Khan criticised FBR for failing to detect a massive Rs803 billion tax issue, questioning how such a significant discrepancy went unnoticed.
FBR Chairman Rashid Mahmood Langrial, while acknowledging the challenge of tackling corruption, refrained from commenting on past financial controversies. He stated that an attempted tax fraud of Rs312 billion was thwarted, but another case involving Rs60.4 million was not prevented.
Audit officials informed the committee that FBR has long resisted scrutiny of its Common Pool Fund (CPF), claiming it is a private welfare fund for low-grade employees.
PAC member Omar Ayub dismissed this argument, stating that as a state institution, FBR’s financial dealings must be transparent and subject to audit. The committee directed that audit guidelines be established for CPF, which has never been audited since its inception.
During the meeting, PAC members also noted that 15 government ministries lack chief financial officers (CFOs) and requested a detailed report on the matter.
