FBR directed to lodge FIR against 4 telecom companies

[Lahore_Real_Estate]

* PAC orders freezing of all companies’ assets within two days

Staff Report

ISLAMABAD: The National Assembly Public Accounts Committee (PAC) on Wednesday directed the Federal Board of Revenue (FBR) to lodge a first information report (FIR) against four telecom companies for alleged tax theft of Rs 320 million and to freeze all movable and immovable properties of the companies concerned within two days.

These directions were given during the PAC meeting, chaired by Leader of the Opposition Chaudhry Nisar Ali Khan, held in the Parliament House. Nisar expressed regret over the issue of a relief in sales tax for two telecom companies in 2006-07. He said FBR officials were responsible for “this kind of financial embezzlement”.

“The revenue secretary and FBR officials had forged my name and reinstated the

Collector Sales Tax Rawalpindi... the committee did not approve any such orders,” Nisar added. He said the FBR chairman was responsible for all this “distortion” in revenue due to mismanagement.

FBR Chairman Sohail Ahmed admitted his mistake of reinstating the Collector Sales Tax Rawalpindi without first informing the PAC. “I should have taken permission from the PAC. I admit it and I apologise,” he said.

According to details, a telecom sector company, under the Rawalpindi Collectorate of Sales Tax was allowed a refund of central excise duty/sales tax in telecom services for the period of January 2001-2005, although the incidence of that had already been passed on to consumers.