Islamabad, Pakistan: Federal Finance Minister Muhammad Aurangzeb has confirmed that the Input tax adjustment system causing tax fraud worth Rs3,400 billion in Pakistan.
Addressing a press conference along with the Chairman of the Federal Board of Revenue (FBR) here on Thursday, October 10, 2024, the minister gave a complete presentation with facts, figures, and even video recordings of top companies of Pakistan exposing how such huge companies did tax fraud in the country.
Crackdown on sales tax evaders would be in the next 15 to 20 days
He warned Chief Finance Officers (CFOs) of companies that they would be arrested if their companies were found involved in tax fraud.
Giving a sector-wise presentation, the Chairman FBR stated that cement, footwear, battery, and beverage sectors toping the tax fraud. It was revealed that only 14% of the 300,000 manufacturers are registered, and there is a tax shortfall of Rs18 billion in the textile weaving sector while in the iron and steel sector, Rs29 billion is being lost due to excessive input tax claims.
FBR Chairman Rashid Langrial informed the national press FBR had found tax fraud worth billions of rupees in tax returns presented by big industries. He stated that he was not revealing the names of these companies at this stage but their names would be shared with the national press when they were arrested within a week following legal procedures and promised with media that a crackdown on sales tax evaders would be in the next 15 to 20 days.
