Senate Committee Demands Complete Tax Data
Senator Dilawar Khan has accused the Federal Board of Revenue of withholding important tax records from Parliament. He raised the allegation during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saifullah Abro. Khan said it was the first time in Pakistan’s history that the tax authority had refused to provide the complete information requested by lawmakers.
FBR officials told the committee that complete tax return and payment records for the 2025-26 financial year would become available after July 18. The officials requested additional time to collect and verify the information. The committee accepted the request and directed the FBR to submit the full data between July 20 and July 22.
The tax authority also informed lawmakers that detailed information about tobacco production would be presented at the next committee meeting. The data will include registered production, undocumented manufacturing and tobacco products operating outside the tax system.
Tax Exemptions in Former Tribal Areas Face Scrutiny
The committee raised serious concerns over the alleged misuse of tax incentives granted to businesses operating in the former FATA and PATA regions. Lawmakers questioned consumption certificates issued to the ghee, steel and textile industries under regional tax relief schemes.
Senator Dilawar Khan alleged that several companies had declared products as manufactured and consumed inside tax-exempt areas. However, he claimed that many of those goods were later sold or used in major cities, including Lahore, Gujranwala, Faisalabad and Sialkot. This may have allowed businesses to receive tax benefits without meeting the legal conditions.
Committee Chairman Saifullah Abro questioned how imported textile products worth Rs.154 billion could have been consumed entirely in the tax-exempt regions. He said the figures required detailed examination and demanded evidence showing where the imported goods were stored, processed and sold.
Senator Talha Mahmood also raised concerns over imported tea worth Rs.62 billion. He questioned why consumption certificates were unavailable for such a large quantity of imported tea and asked whether the products had entered markets outside the tax-exempt areas.
FBR Cites Court Orders and Confidentiality Rules
FBR officials said legal proceedings had prevented the authority from taking immediate action against several businesses. They told the committee that some companies had obtained stay orders from the Peshawar High Court to stop the encashment of pay orders. The court had also directed the FBR to hear the affected parties before proceeding further.
The tax authority also cited taxpayer confidentiality laws as a challenge in sharing complete records with Parliament. However, committee members argued that parliamentary oversight required access to sufficient information to investigate possible tax violations.
The committee directed the FBR to develop a legal mechanism for providing the requested records without violating taxpayer confidentiality. Lawmakers said greater transparency was necessary to prevent the misuse of tax exemptions and protect public revenue.
