FBR's PKR 4.7 trillion tax claims stuck in litigations

Prime Minister of Pakistan Muhammad Shehbaz Sharif chaired a review meeting on Friday to address the Federal Board of Revenue's (FBR) tax claims worth PKR 4.7 trillion currently stuck in 33,522 cases at various courts and tribunals.

"Steps should be taken to resolve all revenue-related cases as soon as possible," said Sharif.

He emphasized the need for the FBR to engage reputable lawyers for tax revenue-related cases and highlighted ongoing reforms in the FBR system.

Sharif directed a forensic audit of revenue-related cases, warning that officers found creating cases on weak or incorrect grounds would be punished.

Conversely, officers who have created cases on merit with honesty and hard work would be rewarded with special incentives.

The meeting was informed that the inclusion of reputable lawyers on the panel, following the Prime Minister's directive, led to the resolution of 586 cases in the High Court and 637 pending cases in the Supreme Court from July to December 2024.

Additionally, a litigation management dashboard for higher courts has been prepared in the FBR, and the Tax Tribunals Management System in the Ministry of Law and Justice is nearing completion and will be launched soon.

As of December 2024, FBR was facing a revenue shortfall of around PKR 509 billion for the first half of the fiscal year 2024-25. This was due to the FBR missing its monthly tax collection targets for four consecutive months.