ISLAMABAD: Tax recovery cases worth Rs 100 billion are pending in courts of law, Federal Board of Revenue Chairman Sohail Ahmed informed the Public Accounts Committee on Tuesday.
“Of the Rs 100 billion, disputed tax recovery cases of Rs 37 billion are sub judice in the Supreme Court,” he said, adding that the cases were pending since long. He said he had forwarded a request to the chief justice of Pakistan to constitute a special bench on the said cases, so that the FBR could collect outstanding revenue. Ahmed said around 6,017 cases were pending in high courts.
The FBR chairman was briefing the PAC meeting that was held to review the audit report of FBR for the year 2008-09. The meeting was informed that the Supreme Court had been asked to expedite the proceedings relating to the non-recovery of taxes from the public and private sectors. Ahmed said the FBR collected 70 percent of the revenue collected in the country. PAC Chairman Nisar Ali Khan praised the bureau’s performance, adding that there was still a long way to go in achieving excellence in the field.
He directed the FBR to maintain friendly ties with tax payers, but “no leniency should be made as the money belonged to public exchequer”. Khawaja Muhammad Asif asked the FBR to provide the details of income tax and wealth tax paid by Gen (r) Pervez Musharraf during the last ten years.
Nisar also formed a special committee to probe tax-evasion tactics and monopoly related matters of the automobile industry. The special committee will conduct inquiry into the matter under Khawaja Asif. PAC members had complained that the auto and tractor manufacturing industries were looting the people in the name of “own” price and requested the PAC chairman to get an inquiry conducted on the matter.
Some members expressed concern over reports that during the previous regime, some local car manufacturing companies used to gift vehicles to the Ministry of Commerce and Ministry of Industries and Production as bribe to continue illegal marketing practices. Nisar directed the special committee to probe into the matter and present its report within two months.
The public accounts committee also expressed displeasure over the misuse of government vehicles by various ministries and divisions, adding that the principal accounting officer concerned would be held accountable if the practice continued. The PAC was told by audit officials that NAB, Ministry of Human Rights and the Economic Affairs Division were not sharing details of official vehicles and their use with the Auditor General of Pakistan office.
Nisar said how could NAB hold anyone accountable when the bureau needed to be held accountable itself. The audit officials added that even after repeated reminders, only 24 ministries and divisions had submitted the records of their vehicles so far. The PAC chairman ordered audit officials to collect complete details of official vehicles of all government departments and report to the PAC at the earliest.
