ISLAMABAD: A subcommittee of the Senate Standing Committee on Interior and Narcotics Control on Monday reviewed border security mechanisms at key import entry points, alleged tax evasion through consumption of imported raw material meant for tax-exempt areas, and the affairs of the Senate Employees Housing Cooperative Society.
The meeting was held at the Parliament House under the convenorship of Senator Saifullah Abro. Senators Muhammad Talha Mehmood and Umer Farooq attended the meeting, while Senator Dilawar Khan participated as a special invitee.
Officials of the Federal Board of Revenue (FBR) informed the committee that a detailed report on the tobacco taxation issue had already been submitted. They said provisional data regarding tax-exempt imports across various sectors had been compiled from manual records and would be finalised within a week.
The committee expressed serious concern over the significant disparity between the value of tax-exempt imported raw materials and the consumption certificates issued against them.
Members directed the FBR to thoroughly investigate the matter, particularly in high-value sectors such as ghee, to identify tax leakages, broaden the tax base, and recover allegedly evaded revenue.
The committee was informed that around 50 cases relating to rejected consumption certificates were pending before courts after affected parties obtained stay orders from the Peshawar High Court.
FBR officials said the high court had ruled that the FBR could not reject consumption certificates but should instead conduct audits.
The FBR has challenged the decision before the Federal Constitutional Court. Senator Abro directed the FBR to vigorously pursue the matter before the Federal Constitutional Court, emphasising that effective scrutiny of tax-exempt raw material imports could generate substantial revenue for the national exchequer.
He also instructed the FBR to submit a comprehensive report to the committee within 10 days. The committee reaffirmed its commitment to strengthen the tax system by identifying loopholes and proposing measures to prevent misuse of tax exemptions.
The panel also took serious notice of complaints regarding the Senate Employees Housing Cooperative Society, particularly reports that Senate employees had not received possession of their plots and that the society was allegedly being managed by private individuals instead of its members.
Officials of the Federal Investigation Agency (FIA) informed the committee that an FIR against the management of the Senate Housing Society had previously been registered on the order of the Supreme Court.
The committee directed the FIA to submit an updated report on the current management of the society within one week.
Senator Abro instructed the FIA to take strict legal action against those unlawfully managing the society and stressed that it must remain under the control of its legitimate members.
He reiterated the committee’s resolve to safeguard the rights and interests of Senate employees and ensure transparency and accountability in the affairs of the society.
Published in Dawn, July 21st, 2026