Rs1.12 trillion tax-exemption probe: FIA unable to locate 27 firms, Senate panel questions investigation, seeks report in one month

Profit reported that the Federal Investigation Agency told a Senate panel on Tuesday that 27 of the 512 firms which issued consumption certificates for tax-exempt imported raw materials could not be found at their stated addresses. The certificates cover imports worth Rs1.12 trillion and were issued between 2018 and 2026. The FIA said its inquiry began on August 20.

The Senate Standing Committee on Interior and Narcotics Control, chaired by Senator Faisal Saleem Rehman, questioned the FIA's authority over tax matters under the FBR and urged a joint mechanism to avoid overlap. The FBR contested a portion of the briefing, arguing that the FIA had merely sent notices and had not gone to the premises. FIA officials countered that inspections of sites were also planned. Another 17 company owners have moved the Peshawar High Court, seeking referral of the matter to the Senate finance committee and restraint on agency action.

Both the FBR and FIA have been told to deliver detailed reports within a month, accompanied by checked stock logs of seized items. Lawmakers put the yearly cost to the exchequer at an estimated $1 billion, citing irregularities in the former tribal areas. Separately, members asked why the case over the theft of 2,828 cigarette cartons worth Rs250 million from FBR storage in Swabi and Mardan focused on junior staff.