ISLAMABAD: The Auditor General of Pakistan’s report for 2024-25 has revealed alarming tax shortfalls and widespread accounting discrepancies, resulting in a tax gap of Rs789.92 billion. The findings indicate significant weaknesses in tax compliance and enforcement, with the most substantial gaps found in income tax, sales tax, customs duties, and federal excise duties.

The income tax gap was the largest, amounting to Rs480.19bn, followed by a Rs212.12bn shortfall in sales tax. Customs duties contributed Rs40bn to the deficit, while a relatively minor discrepancy of Rs615m was identified in the Federal Excise Duty. These figures underline systemic failures in tax collection and governance across multiple sectors.

The Auditor General also reported Rs57bn in discrepancies between net revenue figures provided by the Federal Board of Revenue (FBR), the State Bank of Pakistan, and the Accountant General Pakistan Revenues (AGPR), highlighting significant inconsistencies in fiscal accounting across key institutions.

Among........

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