ISLAMABAD: The Federal Board of Revenue (FBR) has delayed implementation of a key recommendation of the Federal Tax Ombudsman (FTO), which was also duly upheld and confirmed by the President Asif Ali Zardari to constitute a team of sales tax/ IT experts to implement an IT-based system for eliminating the menace of fake/ flying sales tax invoices.
The case has been argued by a Lahore-based tax lawyer Waheed Shahzad Butt against the gang of fraudsters allegedly comprising some tax officers, lawyers, chartered accountant and some criminals. This systemic abuse, which has been causing multi-billion-rupee losses to the national exchequer annually, could only be curbed through the introduction of a robust technological mechanism and completion of a “chain audit” of transactions from inception to conclusion.
Chain audit completion: FBR failed to implement FTO’s key recommendation
However, despite clear and binding directions, FBR has yet to act meaningfully, Waheed added.
The continued failure to implement these critical reforms not only undermines the credibility of the FBR but also perpetuates a cycle of massive revenue leakages, eroding public trust in the country’s governance and accountability framework. FTO has provided an opportunity to the FBR to submit an implementation report.
Copyright Business Recorder, 2025
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