MTBA Expresses Concerns Regarding Suspected Corruption in PRAL and FBR’s IT Wing
Multan: The Multan Tax Bar Association (MTBA) raised serious concerns over corruption in the Pakistan Revenue Automation Limited (PRAL) and the IT Wing of the Federal Board of Revenue (FBR). In a letter to FBR Chairman, the MTBA pointed out unethical practices where bribe is said to be demanded to release provisional sales tax returns of registered taxpayers.
As per the MTBA, PRAL, and the IT Wing, employees have been cooperating to prevent bogus individuals from generating false invoices. This has been taking place because of the unauthorized unlocking of sales tax returns, through which bogus transactions can be inserted and resubmitted.
This problem was also raised by the Federal Tax Ombudsman, Dr. Asif Mahmood Jah, in his October 2024 report, where it was shown that tax authorities were involved in assisting fraudsters. Despite this, the MTBA asserts that corruption persists in these departments, and honest taxpayers are being affected due to inadequate supervision and poor regulatory actions.
The MTBA also noted that the abuse of SRO 350(I)/2024 has aggravated the situation. It makes it possible for individuals to unlock provisional returns through bribery, which allows them to alter invoices prior to resubmission.
The MTBA has asked the FBR to act swiftly to end these corrupt activities and restore the integrity of PRAL and the IT Wing. They want more effective checks and appropriate supervision to avoid further misuse of the tax system.
The letter ended by asking the FBR to take this matter seriously to safeguard the interests of honest taxpayers and uphold the credibility of the tax system.
This report has caused concern among the business community, with most demanding more transparency and accountability from the FBR. The FBR has yet to issue an official response to these grave
