The Federal Board of Revenue (FBR) has failed to submit records to a Senate investigation regarding the alleged misuse of FATA/PATA tax exemptions. The parliamentary panel is seeking documents to explain imports worth Rs. 1,120.66 billion, despite a deadline of November 2 for the FBR to provide the information.
The Subcommittee of the Senate Standing Committee on Interior and Narcotics Control, chaired by Senator Saifullah Abro, is attempting to establish how much of the imported goods were properly accounted for under the tax exemption arrangement. According to figures presented to the committee, total imports during the period reached Rs. 1,120.66 billion, but consumption certificates only covered Rs. 389.86 billion. This leaves an apparent unreconciled difference of Rs. 730.79 billion.
A sector-wise breakdown provided to the committee showed apparent discrepancies of Rs. 148.248 billion in steel, Rs. 146.95 billion in textiles and fabric, Rs. 100.88 billion in food, and Rs. 76.48 billion in ghee and oil. The committee has called for a transaction-wise reconciliation to determine potential tax liabilities or revenue losses.
The Federal Investigation Agency (FIA) informed the committee it has issued 512 notices to companies. Of these, 19 companies appeared with partial records, while more than 100 notices were returned or remained undelivered. The FIA stated the matter is under examination before a competent court and remains investigative in nature. The agency is independently examining possible corruption, abuse of authority, diversion of goods, and wrongful release of securities.
During the meeting, FBR representatives claimed they had not received any formal notice from the court. However, FIA officials told the committee that the agency’s legal adviser had received the relevant court order. Senator Abro questioned the FBR's reluctance to share records with Parliament, especially since the department was prepared to provide information to the court. He asked the FBR to explain the legal basis for withholding information under Article 66 of the Constitution and to identify which authorities are authorized to access the records.
The committee also reviewed consumption certificates and payments. It was reported that out of 223 companies, certificates were expected to have been issued for 60 companies. Senator Abro sought a complete explanation for these certificates and the amounts released against them, specifically highlighting 20 certificates involving approximately Rs. 64 billion. He also questioned the release of payments totaling approximately Rs. 74 billion without adequate verification.
The committee stressed that legal provisions should not be used to delay accountability and that parliamentary oversight must be respected. Senator Abro stated the state must recover every rupee legally due. The documents are scheduled to be reviewed at an in-camera session on November 16.
