MULTAN: The Multan Tax Bar Association (MTBA) has raised serious concerns regarding alleged malpractice within the Pakistan Revenue Automation Limited (PRAL) and the IT Wing of the Federal Board of Revenue (FBR).
In a letter addressed to the Chairman of FBR, the association highlighted unethical practices involving the unlocking of provisional sales tax returns for registered persons in exchange for bribes.
According to the letter, PRAL and the IT Wing personnel have allegedly been colluding to enable fraudulent individuals to generate fake and flying invoices. This illicit activity, the association claims, has been facilitated by the unauthorized unlocking of provisional returns.
The issue was previously underscored by Federal Tax Ombudsman Dr. Asif Mahmood Jah, who identified collusion between tax officials and fraudsters in his report titled Complaint No. 2800/KHI/ST/2024, dated October 3, 2024, Mr. Muhammad Sharif vs. The Secretary, Revenue Division, Islamabad.
Despite prior findings and recommendations, corruption within these departments remains rampant, the MTBA noted. The letter emphasized that bona fide taxpayers continue to suffer due to a lack of effective oversight and regulatory measures. The misuse of SRO 350(I)/2024 has further exacerbated challenges faced by taxpayers, as the unlocking of provisional returns upon bribe payments allows illicit modifications to invoices before resubmission.
The MTBA urged the FBR to take decisive action to curb these corrupt practices and restore the integrity of PRAL and the IT Wing. The association called for stringent oversight mechanisms to prevent further exploitation of the tax system by unscrupulous elements.
“We trust you will treat this matter with the urgency and seriousness it deserves to protect the interests of honest taxpayers and uphold the credibility of the FBR,” the letter concluded.
The development has sparked concerns among the business community, as stakeholders demand transparency and accountability in tax administration. The FBR has yet to issue an official response regarding the allegations.
