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Home Breaking News

Rs800b tax refund fraud detected in four months: PM Shehbaz

byCT Report
19/07/2024
in Breaking News, Islamabad, Latest News, Slider News
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ISLAMABAD: Prime Minister Shehbaz Sharif instructed that the number of Appellate Tribunals be increased to 100 to expedite the resolution of tax cases.

Chairing a review meeting on reforms and digitization in the Federal Board of Revenue (FBR), the prime minister also directed an increase in the number of Appellate Tribunals for Customs cases and the creation of a dashboard to evaluate the performance of Tax Appellate Tribunals.

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The prime minister stated that tax refund fraud amounting to Rs 800 billion was uncovered in the past four months, and emphasized further improvements to the tax refund system.

The prime minister expressed that increasing revenue was achievable through reforms in the FBR. He lamented the unfortunate and unnecessary delays in many of the FBR’s reform projects.

The prime minister emphasized zero tolerance for delays in sales tax refund payments and instructed the immediate formulation of a strategy to recover unlawfully issued refunds.

The prime minister directed the complete digitization of the Fraud Detection and Investigation Department of the FBR and the development of a strategy to centralize all ongoing reform projects within the FBR.

The prime minister instructed the relevant authorities to employ the latest technology and the best personnel for the digitization of the FBR. Shehbaz Sharif instructed the implementation of a unified sales tax system for all taxpayers by October 2024.

The prime minister was briefed that a unified sales tax return system, successfully implemented by the telecom sector, was being introduced for taxpayer convenience. FBR aimed to integrate with revenue authorities across the country through a unified sales tax platform.

The prime minister assured timely funding for upgrading the customs system and directed the FBR to devise a strategy for designing and implementing the new software system.

The prime minister was informed about the reforms in Inland Revenue and Customs, along with the progress achieved in digitizing the FBR in the last eight weeks.

The prime minister was informed that McKinsey, a globally recognized consultant, was overseeing the digitization process of the FBR, and positive outcomes from this initiative have begun to surface.

The PM was informed that there were 83,579 tax-related cases amounting to Rs3.2 trillion pending in various courts and tribunals.

It was conveyed in the forum that during the current government’s tenure, several initiatives have been undertaken to handle tax cases. In the past four months alone, courts have settled 63 cases amounting to approximately Rs 44 billion.

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