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| Billions in Sales Tax Fraud Uncovered Across Multiple Sectors by FBR |
FBR's Intelligence Agency Uncovers Billion-Rupee Sales Tax Fraud Across Multiple Industries.
The Directorate General Intelligence and Investigation Inland Revenue (I&I-IR) of the Federal Board of Revenue (FBR) has exposed a significant sales tax fraud amounting to billions in key sectors such as coal, oil, ghee, textile, paper, steel, lead, lead waste, and scrap.
Between May and August 2023, the I&I-IR detected illegal adjustments of input tax totaling approximately Rs. 70 billion.
Operations were conducted nationwide, leading to the arrest of over 30 individuals involved in tax fraud. Major cities were targeted, and sectors like coal, iron/steel, textile, cotton ginning, lead waste and scrap, copper wire, textile, auto parts, and plastic goods manufacturing were identified as hotspots for tax fraud.
The Directorate also apprehended tax lawyers and advisers aiding fraudsters. The intensified enforcement aims to combat illegal input tax adjustments and issuance of fake invoices, promoting fairness among genuine taxpayers.
"The Directorate General of I&I-IR remains steadfast in its efforts to eradicate the menace of tax fraud. By targeting not only the fraudsters but also their enablers, such as tax lawyers and advisers, the agency aims to create a deterrent against such criminal activities.
This crackdown serves a dual purpose: to recover lost revenue for the government and to ensure a level playing field for honest businesses. By curbing illegal input tax adjustments and preventing the circulation of fake invoices, the FBR strives to promote transparency and integrity within the taxation system.
These stringent measures are essential to maintaining the country's economic stability and fostering an environment where businesses can thrive based on fair and just practices. The FBR urges all stakeholders to remain vigilant and cooperate in the fight against tax fraud, contributing to the overall welfare and progress of the nation.
