Islamabad, May 10, 2024 – In a move to clamp down on rampant sales tax fraud and the circulation of fake invoices, Finance Minister Muhammad Aurangzeb instructed the Federal Board of Revenue (FBR) to intensify their detection and investigatory efforts.
This directive was issued during a high-level meeting at FBR Headquarters, emphasizing the government’s serious stance against tax evasion, which is believed to cause losses in trillions to the national exchequer.
The meeting, chaired by FBR Chairman Malik Amjed Zubair Tiwana, saw the presence of senior board members and focused on a host of pressing issues including the implementation of the Tajir Dost Scheme, advancing IT projects, and tackling the widespread problem of fraudulent tax practices.
Finance Minister Aurangzeb highlighted the critical role of the Tajir Dost Scheme, aimed at integrating small traders into the formal economy. “Our objective is clear – to broaden the tax base and ensure economic inclusivity for all market players. The success of the Tajir Dost Scheme is pivotal in this regard,” he stated.
The discussions also touched on the urgency of developing a robust system to detect and prosecute tax fraud. Aurangzeb directed the FBR to enhance their mechanisms to uncover fake invoice rackets and recover the evaded sales tax. “It is imperative that we sharpen our tools against those undermining the nation’s financial health through deceitful means,” he added.
In response to the minister’s directives, Chairman Tiwana assured that the FBR is already on a path to reform, with multiple digital initiatives aimed at improving efficiency and transparency. He mentioned that the adoption of advanced analytics and artificial intelligence is part of FBR’s strategy to modernize tax collection and enforcement processes.
The meeting also reviewed the overall performance of revenue collection, with a focus on how digital transformation could play a transformative role in boosting governmental revenues. The FBR’s recent initiatives towards digitalization were discussed as key to creating a more dynamic and responsive revenue system.
Industry experts commend the FBR’s commitment to technological upgrades and its potential to significantly curb tax evasion. However, they also stress the need for continuous improvements and the adaptation of global best practices to ensure the effectiveness of these reforms.
As the government tightens its grip on tax fraud, the business community and stakeholders await the outcomes of these new measures, hoping for a fair and transparent tax system that supports economic growth and stability.
