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AGP concerned at possible huge loss due to non-compliance of PAC directives

AGP concerned at possible huge loss due to non-compliance of PAC directives

ISLAMABAD: The Auditor General Pakistan has showed concern over the non-compliance of directives of Public Accounts Committee under the head of Direct Taxes and Indirect Taxes by the Federal Board of Revenue and expressed a possibility to cause the national exchequer a colossal loss of millions of rupees.

The Auditor General Pakistan said that, during last 30 years (From 1987 to 2017), only 33.38 percent compliance of the Public Accounts Committee’s directives was observed by the Federal Board of Revenue while, during last nine years from 2009 to 2017, this percentage has dropped by 3.3 percent.

The Auditor General has viewed that this reflected lack of seriousness by the Federal Board of Revenue. Resultantly, audit observations, involving substantial revenue piling up year after year, showed little action on the part of the Federal Board of Revenue to address these. The situation is alarming as chances of recovery of revenue are diminishing with the passage of time.

According to a report from 2009 to 2017, there were 883 cases under the head of Direct and Indirect Taxes’ recoveries whereas fraud and misappropriation of funds in 29 cases were received. Under the head of Direct Taxes, total 269 objections were raised in nine years but only 13 compliance have been received.

Under the head of Indirect Taxes, total 614 objections were raised during the same period but only 16 compliance have been received till today.