FBR to link performance criteria with audit observation converted into recovery, contravention

KARACHI: Chairman Federal Board of Revenue (FBR) Tariq Bajwa has appreciated Directorate General of Internal Audit for detecting non-realization of revenue to the tune of billions of rupees and part recovery thereof.

Addressing a meeting held with the officials of DG Internal Audit (Customs), Bajwa said the performance of Directorate General is constructive and positive as a support organization despite meager resources.

Chairman said the performance criteria should be based on audit observations converted into contravention report or recovery affected.

It is important to mention that Internal Audit conducts Audit of import / export transactions related to previous financial year and then forward the reliable audit observations to the field formations after which the reports are sent to the concerned Collectorate where the Collectorate issues contravention reports after having satisfied in full conformity of the reports.

The meeting was informed that Internal Audit detected an amount of Rs65.702 billion from July 2010 to February 2015, while the Collectorates reported recovery of Rs2.547 billion, which is approximately 3.87 percent of the detected amount.

According to details, non-realization of Rs14.702 billion revenue was detected in 2010-11 of which Rs331.6 million were collected. The recovery ratio of Karachi region stood at 1.54 percent, Lahore at 3.46 percent and 21.87 percent for Islamabad region.

Non-realization of Rs14.461 billion revenue was detected in 2011-12 of which Rs163.21 million were recovered. The recovery ratio of Karachi region stood at 0.86 percent, Lahore at 0.33 percent and 2.89 percent for Islamabad region.

Non-realization of Rs2.672 billion revenue was detected in 2012-13 of which Rs347 million were collected. The recovery ratio of Karachi region stood at 11.10 percent, Lahore at 21.23 percent and 2.96 percent for Islamabad region.

Non-realization of Rs24.059 billion revenue was detected in 2013-14 of which Rs476.6 million were collected. The recovery ratio of Karachi region stood at 1.83 percent, Lahore at 4.38 percent and 1.61 percent for Islamabad region.

Non-realization of Rs9.805 billion revenue was detected in 2014-15 (July-Feb) of which Rs1.228 billion were collected. The recovery ratio of Karachi region stood at 20.75 percent, Lahore at 1.05 percent and 0.668 percent for Islamabad region.

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