Key Takeaways
- Senator Dilawar Khan accused the Federal Board of Revenue (FBR) of refusing to disclose tax records.
- The committee granted the FBR until July 20-22 to submit complete data on tax returns and payments.
- Committee members questioned alleged misuse of tax incentives for former FATA/PATA regions.
Senator Dilawar Khan accused the Federal Board of Revenue (FBR) of withholding tax records from Parliament, marking what he said was the first time in Pakistan’s history that the tax authority had refused to disclose requested data completely. This accusation came during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saifullah Abro.
Dilawar Khan raised serious concerns over consumption certificates issued to industries such as ghee and steel under tax relief schemes for former FATA/PATA regions. He alleged that products declared as manufactured and consumed in these tax-exempt areas were actually used in cities like Lahore, Gujranwala, Faisalabad, and Sialkot, allowing businesses to benefit from tax exemptions they did not deserve.
FBR officials informed the committee that complete tax return and payment data for the 2025-26 fiscal year would only be available after July 18. They requested additional time to compile the information, and the committee granted them until July 20-22 to submit the complete data.
The officials also stated that detailed information on tobacco production, both documented and undocumented manufacturing, as well as products outside the tax net, would be presented at the next meeting. Committee members questioned the alleged misuse of tax incentives for the former FATA/PATA regions, particularly in the textile sector. Senator Saifullah Abro noted it was difficult to understand how Rs. 154 billion worth of imported textile products could have been consumed in these tax-exempt areas.
FBR officials explained that several businesses had obtained stay orders from the Peshawar High Court to prevent the encashment of pay orders, and the court had directed FBR to hear affected parties before taking further action. Senator Talha Mahmood also questioned the absence of consumption certificates for Rs. 62 billion worth of imported tea.
The committee directed the FBR to explore a legal mechanism to provide Parliament with the requested information without violating taxpayer confidentiality. This development highlights ongoing tensions between legislative oversight and tax authority operations in Pakistan.
