FBR Cracks Down on Sales Tax Evasion, Arrests Textile Executives

The Directorate of Intelligence & Investigation-Inland Revenue in Faisalabad has made some significant arrests recently. They’ve taken into custody the Chief Financial Officers (CFOs) of two textile manufacturers based in Faisalabad for their alleged involvement in sales tax fraud. Specifically, these CFOs are accused of claiming fake input tax on coal, which has resulted in a massive revenue loss of millions of Pakistani rupees to the national exchequer .

This crackdown is part of a larger nationwide operation led by the Federal Board of Revenue (FBR) to combat sales tax fraud and boost tax compliance. The FBR has been actively pursuing tax evaders, and these arrests are a testament to their efforts .

Key Points of the Arrests:

• Arrests Made: CFOs of two Faisalabad-based textile manufacturers
• Charges: Abetment/connivance in sales tax fraud by claiming fake input tax on coal
• Revenue Loss: Multi-millions of Pakistani rupees to the national exchequer
• FIR Registered: Against suppliers, beneficiaries, connivers, and others involved
• Part of Larger Crackdown: Nationwide operation against sales tax fraud and to enhance tax compliance