FBR refuses to share highest taxpayers’ details with Senate body

ISLAMABAD: The Federal Board of Revenue (FBR) on Monday informed a parliamentary committee that it could not disclose details of the country’s highest taxpayers without the federal cabinet’s approval, prompting a strong reaction from the committee chairman.

The issue came up during a meeting of a sub-committee of the Senate Standing Committee on Interior and Narcotics Control, chaired by Senator Saifullah Abro. The committee reviewed the alleged theft of 2,828 cartons of cigarettes from FBR warehouses in Swabi and Mardan, tobacco taxation, smuggling, narcotics control, public awareness campaigns, and the FBR’s enforcement mechanisms, including stock and inventory management.

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The committee had earlier directed the FBR during the previous meeting to submit complete details of taxes assessed, collected, and pending from the tobacco industry over the past 20 years. It had also sought records of all registered tobacco factories, documentary evidence relating to pending taxes, a list of tobacco companies and their brands, and revenue and tax collection data for the same period.

The FBR officials, while briefing the committee, said they had brought the bulge data but had omitted certain information. They said the FBR had written to the Ministry of Law to seek legal guidance on whether the requested data could be shared with the committee.

Expressing dissatisfaction with the response, Abro remarked that whenever irregularities within an institution are exposed, officials often resort to similar explanations.

He also asked whether the relevant Standard Operating Procedures (SOPs) existed in written form.

The committee chairman directed the FBR to furnish data on taxpayers. However, FBR officials said providing such information would be difficult, arguing that cabinet approval was required before the data could be shared. They added that details of the country’s highest taxpayers are released only after the approval of the cabinet.

Abro told the FBR officials that you are unnecessarily complicating the matter. He insisted that the requested data must be presented before the committee.

“If you do not provide the data, your Prime Minister will provide it here,” Senator Abro said. He further warned that the committee was prepared to pursue the matter to whatever extent necessary.

Abro said that the Prime Minister would publicly state that FBR officials had made false statements, adding that any resulting consequences would have to be faced by the officials concerned.

At the outset, the committee was briefed by the FBR officials on tax collection from the tobacco industry. The FBR officials informed the meeting that 35 tobacco companies operate in the country with multiple brands.

They informed the parliamentary body that factories operating in the tax-exempt areas previously enjoyed income tax exemptions, which have now ended from July 2026.

While discussing the investigation matter of the 2828 cartons of cigarettes, the convenor emphasised that the FIA was independently conducting its investigation and that the committee bore no responsibility for that process.

Abro questioned whether the Prime Minister had been provided with incorrect information about annual tobacco tax evasion before the advertisement was issued. He also noted that relevant SROs are amended every year and urged the FBR to fix its internal system, warning that continued institutional failures would undermine public confidence. Citing the theft of 2,828 cartons of cigarettes, he remarked that no meaningful action had been taken despite the scale of the incident.

Abro observed that there are 52 companies importing tea into Pakistan. Referring to imports destined for the former FATA region, he questioned whether tea worth Rs62 billion imported annually for the area reflected actual consumption, asking, “Do they really consume this much tea?”

The FIA officials informed the committee that they would work jointly with the FBR in tax-exempt areas to address smuggling and related issues.

Senator Abro said that two parliamentarians had recently established factories in the former Federally Administered Tribal Areas (FATA). He alleged that people often set up factories in tax-exempt areas to evade taxes and questioned why such industries were not established in settled areas instead.

FIA officials briefed the committee that oil companies in Karachi had been allegedly involved in revenue fraud amounting to billions of rupees.

The committee also took up the case involving the theft of 398 kilograms of silver. Customs officials informed lawmakers that the silver was being transported from Quetta by FBR officials when it went missing.

Customs officials said that the FIA has arrested those allegedly responsible, and a significant portion of the stolen silver has been recovered. They alleged that customs officials were found involved in the theft.

Officials further stated that the silver was recovered from a collector who was in charge of the consignment. They added that two FBR inspectors and one private individual were also allegedly involved in the case, they said.

Senator Dilawar Khan criticised the FBR’s tax administration and accountability mechanisms. He alleged that incorrect information had been conveyed to Prime Minister Shehbaz Sharif, Federal Information Minister Atta Tarar and Defence Minister Khawaja Asif, questioning why the country’s population of 260 million had been misled.

Senator Dilawar Khan further questioned why an officer allegedly under investigation for the theft of 2828 cartons had been granted leave.

Senator Talha Mahmood cautioned that sending FIA teams directly into industrial areas could create difficulties for businesses. He suggested that the FIA should obtain the required data from the FBR instead of conducting extensive field visits.

Copyright Business Recorder, 2026