Tax Revenue Claims Stuck in Litigation: SC Requests Full Report from FBR
ISLAMABAD: The Supreme Court has requested a detailed report from the Federal Board of Revenue (FBR) on tax revenue claims worth Rs 3.5 trillion tied up in litigation due to various cases and appeals to the judiciary superior.
The sources said that the Registrar’s Office has requested the Attorney General’s Office to obtain the FBR’s full report on the number of cases pending in which High Court and the Supreme Court.
On February 17, FBR Chairman Dr. Muhammad Ashfaq Ahmed told the National Assembly Standing Committee on Finance that tax revenue of Rs 3.5 trillion was tied up in litigation due to different cases and appeals. before the higher court. He said it was a major challenge for them as they were trying to shorten the procedure.
“All the cases have been brought to court under Section 199 and there are different stages for the pending cases until they come to the Supreme Court of Pakistan,” he said, adding that the FBR had introduced Alternative Dispute Resolution (ADR), which failed to bring the desired results.
Provisional figures: tax collection in February stands at 443 billion rupees
Last month, Islamabad High Court (IHC) Chief Justice Athar Minallah, amid concerns of the federal cabinet over pending issues, in which billions of rupees from the state treasury were involved, summoned a meeting of senior government officials, attended by Federal Minister of Information Fawad Chaudhry, Pakistan Attorney General Khalid Jawed Khan and Chairman of FBR, Pakistan Competition Commission and Petroleum Regulatory Authority and gas.
At this meeting, AGP, Khalid, provided details of ongoing FBR disputes and customs cases.
According to the data, about 80 percent of RBF tax revenue claims were pending before the internal bodies of the tax collection agency, such as tax collectors and appellate courts.
FBR data revealed that up to January 25, a total of 90,426 tax cases were pending in different forums, in which Rs 3,303,740 million was at stake.
Of the Rs 3.5 trillion, Rs 2,556 billion was pending before the Courts of Appeal and Collector Commissioners.
A total of 58,937 cases were pending before the Courts of Appeal, involving tax revenue of Rs 950 billion, while 19,523 cases were pending before the Collector Commissioners, in which Rs 1,606 billion of tax revenue was claimed by the FBR.
“About Rs 410 billion of tax revenue claims are blocked in the higher courts.”
A total of 2,959 cases were pending before the Supreme Court, involving tax revenue of Rs 72.208 billion.
Up to 1,298 FBR cases were pending before the IHC, involving tax claims of Rs 232.66 billion.
In the Sindh High Court (SHC), 2,238 cases were pending, while tax revenue of Rs 195.49 billion was involved.
A total of tax claims amounting to Rs 234.71 billion in 5,133 cases were pending in the Lahore High Court (LHC). In the Peshawar High Court (PHC), 317 cases were pending, in which Rs 76.04 billion in tax revenue was claimed by the FBR. In the Balochistan High Court (BHC), 21 FBR cases were pending, in which tax revenue of Rs 4 billion was claimed.
Regarding the details of the pending customs disputes, the government reported that a total of 17,642 cases were pending, in which Rs 273.67 billion in tax duty was claimed by the department.
In the Supreme Court, 1,434 customs cases were pending, involving about 10 billion rupees from the Treasury.
In the IHC, 147 tax duty cases of Rs 06 billion were pending. Some 5,441 cases were pending at the SHC, involving revenue of Rs 105.98 billion.
In the LHC, 568 cases were pending in which 7.7 billion rupees from the Treasury were involved while in the PHC, 583 cases were pending, in which tax claims of 1.3 billion rupees were involved.
At the BHC, 110 cases were pending while 68 million rupees were claimed by the FBR. In the collectors’ appeals, 718 cases were pending, while tax revenue of Rs 6.2 billion was involved. In the Customs Appeal Courts, 4,640 cases were pending, while tax duties of Rs 82 billion were at issue.
Copyright Business Recorder, 2022