ISLAMABAD, July 18: Federal Board of Revenue (FBR) Chief Rashid Langrial on Thursday disclosed that Pakistan is currently facing tax fraud exceeding Rs 700 billion, with sales tax fraud at alarmingly high levels compared to other countries.
While briefing a sub-committee of the National Assembly’s Public Accounts Committee (PAC), Langrial said that despite certain improvements in the tax system, completely eradicating sales tax fraud remains a challenge.
He noted that tax evasion in the country has escalated sharply, although efforts to curb sales tax-related fraud have yielded partial success. The FBR has introduced reforms, but significant loopholes still persist.
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The FBR chief highlighted the urgent need to strengthen post-audit procedures and implement tough penalties to counter the widespread use of fake invoices used to claim unlawful refunds.
Langrial revealed that the FBR managed to recover Rs200 billion during the last fiscal year, following the resolution of tax litigation cases in courts.
He added that the revenue authority has now been equipped with enhanced powers to crack down on tax fraud and recover evaded dues more effectively. However, he warned that the frequent release of arrested tax evaders diminishes the deterrent effect and weakens the overall fight against fraudulent practices.
