FBR Reveals Rs700bn Sales Tax Fraud in Pakistan
Sales Tax Fraud in Pakistan Surpasses Rs700 Billion, Says FBR Chairman
ISLAMABAD – The Chairman of the Federal Board of Revenue (FBR) has revealed that Pakistan faces an alarming scale of sales tax fraud, with estimated losses exceeding Rs700 billion—far higher than in many other countries.
While briefing a subcommittee of the National Assembly’s Public Accounts Committee (PAC), the FBR chief highlighted that although improvements have been made in the tax system, the complete elimination of sales tax fraud remains unlikely.
He stated that tax evasion levels have increased significantly in recent years, though some success has been achieved in partially controlling fraud linked to fake invoicing.
To curb the menace, the FBR chairman emphasized the need to strengthen post-audit mechanisms and introduce stricter penalties for offenders. “The unchecked issuance of fake invoices continues to damage the national economy,” he said.
In a notable development, Rs200 billion were recovered in the last fiscal year after tax litigation cases were resolved in courts. The FBR has also been given enhanced legal powers to act against tax fraud and recover outstanding dues from fraudulent entities.
However, FBR Member Khawaja Awais Langrial warned that the frequent release of arrested tax evaders weakens deterrence and emboldens future fraudsters.
FBR Fails to Meet FY 2024-25 Tax Collection Target
The FBR has been under growing pressure to plug revenue leaks and expand the tax base as Pakistan continues to face fiscal challenges.
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