The Auditor General of Pakistan has uncovered notable discrepancies amounting to billions of rupees in the tax collection and refund figures maintained by the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) for the financial year 2023-24. The findings, presented in the latest audit report, point to long-standing reconciliation issues that have persisted across multiple fiscal years.
According to the audit for FY 2023-24, conducted by the Accountant General Pakistan Revenues (AGPR), a total variation of Rs 18,152 million was recorded between FBR’s reported tax collection figures and those maintained by SBP. This variation spans key revenue streams including income tax, customs duties, sales tax, and federal excise duty.
The report highlights that FBR reported income tax collections of Rs 4,461,337 million, while SBP recorded Rs 4,477,815 million, showing a gap of Rs 16,478 million. Similarly, FBR’s customs collection figures of Rs 1,082,783 million differed from SBP’s Rs 1,082,940 million, reflecting a discrepancy of Rs 157 million.
In the case of sales tax, the audit observed a variation of Rs 6.721 million, with FBR’s net collection at Rs 3,086.832 million against SBP’s Rs 3,080.111 million. Federal excise duty also showed a significant difference of Rs 8,238 million between the two institutions’ records.
When the AGP office raised the issue with FBR, the tax authority stated that the audit did not factor in book adjustments and Export Development Surcharge (EDS), which are typically added to SBP’s collection figures. According to FBR’s response, the inclusion of these adjustments would have minimized the reported gap.
However, the audit countered that even after accounting for adjusting and transfer entries, there should be no remaining discrepancies between FBR, AGPR, and SBP figures. This unresolved variation, auditors stated, reflects weaknesses in financial reporting and coordination between key fiscal institutions.
This issue is not new. Similar discrepancies were highlighted in previous audit reports for fiscal years 2019-20 through 2022-23, with a cumulative financial impact of Rs 36,426 million. The recurrence of such irregularities has raised serious concerns over the integrity of financial data and the reliability of government revenue figures.
The audit further detected a variation of Rs 18,357 million in tax refund figures, specifically in income tax, customs, and sales tax refunds. In this case, SBP’s refund totals were lower than those reported by FBR. FBR explained that its refund data is based on PRAL’s dashboard and may include adjustments in both gross and refund figures, particularly under income tax. The tax body maintained that these adjustments have no net impact on overall figures.
Audit officials, however, maintained their stance that after processing all relevant adjustments, such discrepancies should not exist. The report also identified a variation of Rs 259 million in net tax receipts when comparing AGPR and FBR data up to June 2024.
The audit noted that the issue lies in comparing net figures between SBP and AGPR, and stressed the need for both institutions to provide a clear explanation. It recommended that the matter be addressed collectively by SBP, AGPR, and FBR to ensure transparency and accuracy in future financial reporting.
The findings underscore systemic reconciliation challenges in Pakistan’s revenue collection mechanisms. Such variations, if left unresolved, can undermine confidence in fiscal data and affect the accuracy of public financial management systems. Addressing these gaps will require stronger coordination between institutions, improved reporting systems, and timely reconciliations to ensure transparency in government finances.
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