Finance Minister Muhammad Aurangzeb has reiterated the government’s commitment to addressing revenue leakages and fostering trade and investment by enhancing transparency and digitization in the tax system.
Speaking at a session hosted by the Overseas Investors Chamber of Commerce and Industry, he emphasized ongoing efforts to reform the revenue structure for greater efficiency and client satisfaction.
Aurangzeb disclosed that tax authorities are employing data analytics to identify irregularities and fraud. “We have income and sales tax data for companies sorted by sectors, enabling us to monitor inconsistencies effectively,” he stated.
The minister highlighted the significant disparities in sales tax adjustments claimed by various companies, using the beverage sector as an example. He pointed out that while a beverages company set a benchmark adjustment rate of 7%, other companies in the same sector reported rates as high as 20%, raising concerns about potential tax fraud.
The Federal Board of Revenue (FBR) had previously identified Rs15 billion in excessive input tax adjustments in the beverage sector during the fiscal year 2023-24, according to a study of 16 major manufacturers responsible for 99% of reported sales in the aerated water market.
The FBR report flagged sugar, plastics, and services as the main sources of dubious tax claims.
The finance minister affirmed that these measures are part of a broader strategy to strengthen revenue collection and ensure equitable compliance across industries.
