The Federal Board of Revenue (FBR) has revealed sales tax frauds totaling Rs756 billion in a tax scandal.Â
Dawn reported, quoting high-ranking official sources, that FBR officials informed Prime Minister Shehbaz about the identified tax frauds and actions against the offenders.
The premier was briefed on revenue measures aimed at achieving the revenue target. Following the discovery, FBR has filed over 100 FIRs against the wrongdoers.Â
The prime minister tasked Attorney General Mansoor Usman Awan and Finance Minister Muhammad Aurangzeb with meeting FBR officials to devise a plan for optimal recovery from the fraudsters.
FBR’s tax collection in April fell short of the target by approximately Rs53 billion, primarily due to decreased domestic taxes and customs duty.Â
Revenue collection reached Rs654 billion against a projected Rs707 billion, marking a 34.56% increase compared to the same month last year at Rs486 billion.
Chairman FBR shared a strategy with Finance Minister Muhammad Aurangzeb to clear stuck-up revenue of Rs2.7 trillion in courts/appeals after the passage of the Tax Laws Amendment Bill 2024.
In a related development, the government enacted new legislation establishing the Appellate Tribunal Inland Revenue (ATIR)Â to expedite disputed tax recovery.Â
This law, passed on April 29 by Parliament and signed by President Asif Zardari on Friday, aims to facilitate swift tax recovery from litigation cases.
Currently, 72,000 cases are pending at various forums, with the number of ATIRs increasing from 20 to 35 to expedite the process.Â
Members, equivalent to high court judges, will be appointed through open competition and tests conducted by reputable institutions like IBA, NUST, and LUMS.
Furthermore, commissioners will continue hearing cases of tax liabilities up to Rs10 million, while other cases will be referred to the ATIR.Â
The appeal duration in high courts has been reduced from 90 to 30 days, providing taxpayers with an automatic stay to prevent immediate withdrawal of amounts from their accounts.
