Federal Board of Revenue (FBR) Chairman Rashid Langrial informed a sub-committee of the National Assembly’s Public Accounts Committee (PAC) that Pakistan is currently facing a tax fraud issue exceeding Rs700 billion, according to media reports.
During the briefing, Langrial highlighted that sales tax fraud in Pakistan is alarmingly higher than in many other countries, despite improvements made in the system. He acknowledged that while partial progress has been achieved in curbing sales tax fraud, eliminating it entirely remains a challenging task.
The FBR chief pointed out that tax evasion has escalated significantly in recent years. He emphasised the importance of enhancing post-audit mechanisms and enforcing stricter penalties to address the issuance of fake invoices.
Langrial also shared that Rs200 billion had been recovered in the last fiscal year, following the resolution of pending tax litigation cases in the courts. He added that the FBR had been granted additional powers to combat tax fraud and recover dues from fraudulent cases.
However, Langrial expressed concern over the recurring release of arrested tax evaders, warning that such actions undermine the effectiveness of deterrence and will not prevent future fraud.
