Recovery of taxes: AGP unearths Rs737.868bn irregularities
ISLAMABAD: The Auditor General of Pakistan (AGP) has unearthed financial and procedural irregularities to the tune of Rs737.868 billion in collection and recovery of direct and indirect taxes during 2022-23.
According to the AGP’s new report (audit year 2023-24), audit observations of Rs737.868 billion are raised as a result of audit of the FBR in 2022-23.
Out of this amount, direct taxes irregularities stood at Rs616.181 billion. The irregularities on the indirect taxes side (sales tax and federal excise) stood at Rs90.334 billion. The customs duty related irregularities amounted to Rs28.186 billion.
The irregularities detected in the expenditures of the FBR totaled at Rs3.167 billion. The AGP found that the amount of revenue stuck up in courts stood at Rs124.122 billion during this period.
The report said that only 43 percent compliance with the PAC directives was made by the FBR.
The compliance with the PAC directive as a percentage of total directives was 30 percent for direct taxes, 53 percent for indirect taxes and 44 percent for customs duty.
Moreover, compliance with the PAC directives was only 4.7 percent in the last five years. The AGP report added that the non-production of records of Common Pool Fund (CPF) by the FBR tantamount to hindering the performance of the constitutional duty of the AGP.
Copyright Business Recorder, 2024
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