Rs315 billion sales tax fraud uncovered in iron and steel sector

The Regional Tax Office-1 (RTO-1) has uncovered a major sales tax fraud worth approximately Rs315 billion in the iron and steel sector, according to a statement. 

The fraudulent activities were carried out under the leadership of two individuals, with the assistance of their brother and cousin. One additional accomplice has been arrested in connection with the scheme.

As per reports, the accused were presented before the Special Court of Customs, Taxation, and Anti-Smuggling. The Special Judge has ordered the detention of two suspects in jail custody, while one accomplice has been granted a seven-day physical remand and handed over to RTO-1 for further investigation.

RTO-1 has launched an ongoing investigation to identify other individuals involved and to trace the beneficiaries of the fraud. 

Chief Commissioner of RTO-1, Dr Faheem Mohammad, praised his team for their successful operation, emphasizing the department’s commitment to combatting sales tax fraud and holding perpetrators accountable.

The investigation is expected to send a strong message to deter future illicit activities within the sector.