FBR fell short of Rs425bn revenue in 2020-21: audit

ISLAMABAD: The audit report of the FBR for the financial year 2021-22 has revealed that tax recovery of over Rs425 billion could not be made and fraud and embezzlement of over Rs410 million was committed in tax collection.

Over Rs4.79 billion government revenue was lost due to wrong payments of sales tax refunds. Over Rs.5.4 billion loss was caused by giving unnecessary exemptions and concessions in taxes and duties. According to the tax demand, over Rs115 billion have not been recovered. According to the ongoing audit report for the year 2021-22, there was a less recovery of income tax of over Rs620m due to claims of incorrect expenses and over Rs13 billion were falsely claimed for tax credit, causing loss to the national exchequer in terms of revenue. Withholding tax of over Rs 16 billion was not deducted; FBR collected Supertax less than Rs3.7 billion than the estimates; Over Rs 18.96 billion less was made due to incorrect adjustment of input tax credit; sales tax of over Rs 12.5 billion was not withheld; low recovery of sales tax due to non-distribution of input tax by Rs3.6b and federal excise duty worth Rs1.4 billion was not collected on various goods and services.