Islamabad, Pakistan:The Federal Board of Revenue (FBR) has exposed a massive sales tax fraud scheme involving several major industries in Pakistan.
Finance Minister Muhammad Aurangzeb revealed that companies in sectors such as steel, cement, beverages, and textiles have been evading sales tax through various fraudulent practices. These practices include misreporting turnover, claiming excess input tax, and using fake invoices.
The FBR has identified cases of tax evasion worth Rs3.4 trillion, highlighting the significant impact of this illegal activity on the country’s economy. Express Tribune
The FBR is taking action against companies involved in tax fraud and has warned that those found guilty face severe penalties, including arrest and imprisonment. The FBR is also working to strengthen the regulatory framework to prevent future tax evasion.
This revelation underscores the need for increased transparency and accountability in the corporate sector to ensure fair taxation and prevent the erosion of government revenue.
