PAC cries foul over FBR's 'illegal' siphoning of billions

The Public Accounts Committee (PAC) of the Sindh Assembly on Wednesday raised serious objections over the FBR deduction of billions of rupees in advance Withholding Tax on bank transactions of the provincial government's autonomous bodies and authorities, terming the practice "illegal" and a "direct assault" on Sindh's financial autonomy.

The committee, chaired by PAC Chairman Nisar Khuhro, decided to write a formal letter to Chief Minister Murad Ali Shah and Chief Secretary Asif Haider Shah, urging them to take up the matter at the highest level with the federal government and the FBR.

The audit raised a pointed objection that banks had deducted Rs125 million as Withholding Tax on the department's transactions without authorisation. The audit further noted that the department had failed to obtain tax-free numbers for the protection of government funds, calling the practice an unnecessary burden on the state exchequer.