Islamabad: According to our sources, the Federal Board of Revenue (FBR) has launched an investigation into fraudulent invoices in the steel industry.
FBR has written letters to chief collectors of Customs Appraisal and Facilitation in Karachi, Lahore, Islamabad, and Quetta, according to documents obtained by Profit, asking them to send reports on illegal businesses by May 4.
Misdeclaration of imported steel, according to the FBR, hurts not just the taxpaying local industry but also the national exchequer.
In a letter to Special Assistant to Prime Minister (SAPM) on Revenue Dr. Waqar Masood and the FBR in April, the Pakistan Association of Large Steel Producers (PALSP) complained that the practice of taking claims by fake and flying sales tax invoices was causing the exchequer to lose billions of rupees every month, as well as destroying recorded steel manufacturers who were paying taxes.
According to the group, if tax avoidance continues, the registered and revenue-generating sector will diminish even further.
The association has petitioned the apex body to resolve the issue by cooperating with the organization.
It has advised the FBR on how to recognize fake invoices and has offered its assistance in identifying a solution to the issue, as well as making structural improvements to the sales tax law to make it difficult for any taxpayer to use flying invoices.