Pakistan facing over Rs700bn tax fraud, NA’s PAC body told

ISLAMABAD: The Federal Bureau of Revenue (FBR) Chief Rashid Langrial on Thursday said Pakistan is facing tax fraud of worth over Rs700 billion.

Briefing the sub-committee of NA’s Public Accounts Committee (PAC), FBR chief said that sales tax fraud in Pakistan is alarmingly higher than in other countries.

He estimated the potential volume of tax fraud at over Rs 700 billion, emphasizing that despite improvements in the system, the complete elimination of sales tax fraud remains unlikely.

Finance Act expands definition of tax fraud

He noted that Pakistan’s current level of tax evasion has escalated significantly, though some success has been achieved in partially controlling sales tax-related fraud.

The FBR chairman further stressed the need to enhance post-audit mechanisms and enforce strict penalties to curb the issuance of fake invoices.

He also revealed that Rs200 billion were recovered during the last fiscal year following the clearance of tax litigation cases in courts.

Langrial added that FBR has been granted powers to control tax fraud and recover dues from fraudulent cases.

However, he cautioned that the recurring release of arrested tax evaders undermines deterrence and will not effectively prevent future fraud.