FBR Exposes Rs86 Million Tax Evasion in Karachi

KARACHI: The Federal Board of Revenue (FBR) exposed a massive tax evasion scam in Karachi through under-invoicing. 

According to the FBR spokesperson, the tax fraud detected by the Intelligence and Investigation Wing of FBR exposed the tax fraud through under-invoicing involving a popular cement factory.

The investigation revealed that the cement factory tried to evade sales tax worth Rs86 million by presenting fake invoices. After the scam, the FBR’s I & I wing expanded the investigation and recovered the amount of evaded sales tax.

Earlier this year, the Post Clearance Audit team (PCA-North) of the Federal Board of Revenue (FBR) exposed a massive tax evasion scam in the port city.

The investigation revealed that the goods worth Rs 3.7 billion were illicitly sold under the pretext of tax exemption for the Federally Administered Tribal Areas (FATA), and Provincially Administered Tribal Areas (PATA).

Notably, duty-free imported goods were illegally distributed beyond the designated boundaries of FATA and PATA, violating customs regulations.

The customs officials stated that the duty-free imported goods could be sold only within the limits of FATA, and PATA regions.

A case has been promptly filed, leading to the formation of dedicated teams aimed at apprehending the owner of the implicated firm.