The federal government has ordered a three year independent audit of customs bonded warehouses across Pakistan after concerns over rule violations and tax evasion, while Prime Minister Shehbaz Sharif has also set October 1 as the deadline for the first phase of the FBR’s faceless tax system.
Shehbaz directed the Federal Board of Revenue to conduct the third party audit after a private company was found to have allegedly manipulated in bond and out bond rules for temporary gains. The matter was investigated and resolved, according to the Prime Minister’s Secretariat.
The prime minister also ordered nationwide physical stock verification of bonded warehouses and called for stronger measures covering their licensing, security, valuation checks and information technology systems. Bonded warehouses are privately operated facilities where goods are stored after customs clearance.
The government said bonded trade accounts for 16.5 percent of Pakistan’s total imports. The meeting also reviewed monitoring of petroleum cargo through the WeBOC customs system and measures to strengthen enforcement against tax evasion, smuggling and illegal businesses.
Shehbaz warned that there would be no room for irregularities in customs bonded warehouses and directed that officials found involved in illegal activity face strict action under the law. He also ordered the FBR to appoint officers of good reputation and integrity to sensitive positions.
The prime minister separately directed the FBR to accelerate its reform program and asked its chairman and senior officials to spend two days each month in Karachi and Lahore to strengthen enforcement and help meet revenue targets.
The government also set October 1 for the first phase of the faceless Inland Revenue system to become operational. The technology based system will use artificial intelligence and digital tools for tax audits and assessments, with cases allocated randomly regardless of geographical jurisdiction.
The system will include a National Faceless Audit Wing for tax audits and a Faceless Assessment Unit for adjudication. Shehbaz directed the FBR to ensure full implementation of the faceless system by 2027. The meeting was also briefed on recent operations against illegal cigarette factories in Chakwal and Swabi. The authorities shut down the facilities and seized illicit stock and machinery as part of efforts to strengthen action against tax evasion and illegal manufacturing.
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