ISLAMABAD: The Federal Board of Revenue (FBR) has delayed the implementation of a major recommendation issued by the Federal Tax Ombudsman (FTO) — and later upheld by President Asif Ali Zardari — to form a team of sales tax and IT experts tasked with developing an IT-based system to curb fake and flying sales tax invoices.
The case, pursued by Lahore-based tax lawyer Waheed Shahzad Butt, targets an alleged network of fraudsters that includes tax officials, lawyers, chartered accountants and criminal elements. He argues that only a strong technological framework, including a full “chain audit” of transactions from start to finish, can stop the multi-billion-rupee revenue loss caused by this organised fraud.
Despite clear and binding directives, FBR has yet to take substantive action, Waheed noted. The prolonged delay undermines FBR’s credibility and allows significant revenue leakages to continue, further diminishing public trust in governance and accountability.
The FTO has now given FBR an opportunity to submit an implementation report.
