FBR Aims for Rs47.8bn in Tax Audits, Yields Only Rs529m in FY23

The Federal Board of Revenue (FBR) pursued a demand of Rs47.8 billion through audits related to income tax and sales tax in FY23, yet the actual recovery amounted to a mere Rs529 million.

Income Tax Audits

Data reveals that as of July 2022, there were 8,904 income tax audit cases, witnessing an increase of 1,952 cases throughout the fiscal year. Within this period, 4,313 cases were concluded, leaving 3,420 cases pending.

The total demand created in income tax audits reached Rs39.26 billion, with only Rs440.16 million successfully collected.

Sales Tax

Looking at sales tax, the opening balance of cases in July 2022 was 2,240, experiencing an additional 246 cases during the fiscal year. Out of these, 712 cases were finalized, resulting in a pending demand for 1,350 cases.

In sales tax cases, the demand generated amounted to Rs8.54 billion, while the actual collection remained modest at Rs89.25 million.