ISLAMABAD: The Public Accounts Committee (PAC) was informed on Tuesday about major financial irregularities and violations of customs laws within the Federal Board of Revenue (FBR), resulting in losses of millions of rupees to the national exchequer. Auditors highlighted the FBR’s failure to impose mandatory surcharges and recover additional customs duties as the main causes.
The PAC subcommittee, chaired by convener Shahida Akhtar, reviewed Audit Report 14-2013, which detailed financial mismanagement and breaches of the Customs Act, 1969, covering the period from 2010 to 2014.
During the briefing, the committee was informed that surcharges on delayed payments were not imposed, leading to a loss of Rs15.15 million. Customs offices in Karachi and Islamabad reportedly failed to recover dues despite delays ranging from 11 to 385 days.
Auditors also noted that recoveries amounting to Rs133.8 million were still pending, while only Rs0.96 million had been confirmed as recovered. They warned that these delays directly caused financial losses to the treasury.
FBR Chairman explained that delays in payments by a government entity should have attracted surcharges, but approvals for imposing late-payment penalties were delayed. Following this, the committee directed verification of the audit paragraph and concluded the matter.
The PAC also reviewed another audit finding showing a loss of Rs25.5 million due to the failure to collect additional customs duty. Audit officials reported that five different customs collectorates cleared imports between July and December 2013 without collecting the applicable duties.
