PM forms special inquiry team to investigate sales tax fraud

Prime Minister Shehbaz Sharif has formed an inquiry team to investigate ongoing sales tax fraud cases, according to a notification issued by the Prime Minister’s Office. The team has been tasked with investigating the involvement of public officials, identifying policy loopholes, and uncovering how various entities are engaging in fraudulent activities.

The investigation will focus on analysing financial and accounting transactions linked to sales tax fraud, particularly examining reports from the Intelligence Bureau (IB) and the Financial Monitoring Unit (FMU). Special attention will be given to the role of public officials, including employees of the Pakistan Revenue Automation Limited (PRAL), who are suspected of aiding and abetting these crimes.

The inquiry team is also directed to scrutinize the decisions made by the Federal Tax Ombudsman (FTO) regarding tax fraud cases, assessing how these decisions impact legal proceedings. A key objective is to identify gaps in policy, automation, and enforcement that contribute to sales tax fraud. The team will look into issues such as fake invoices and inadmissible input adjustments, proposing measures to close these loopholes.

The inquiry team will make recommendations for corrective actions, including potential penal actions against those responsible for fraud and reforms to improve the efficiency of the Federal Board of Revenue’s (FBR) systems. The team is also expected to recommend ways to improve the automation systems to prevent similar frauds in the future. The team has been given a 30-day timeline to submit its findings and recommendations.

The inquiry team will be led by Musadiq M. Malik, Federal Minister, and will include notable figures such as Bilal A. Kayani (MNA), Tanvir Akhtar Malik (FBR), Ghazi Akhtar Khan, and Dr. Fareed Zafar, among others. The FBR has been directed to provide full support to the team in conducting its investigation.