Pakistan Facing Over Rs700 Billion in Tax Fraud, Says FBR Chief

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial revealed on Thursday that Pakistan is grappling with tax fraud exceeding Rs700 billion, with sales tax fraud emerging as a major contributor.

During a briefing to a subcommittee of the National Assembly’s Public Accounts Committee (PAC), Langrial stated that the scale of sales tax fraud in Pakistan is significantly higher than that observed in many other countries.

He estimated that the total volume of tax fraud surpasses Rs700 billion, adding that although improvements have been made to the system, completely eradicating such fraud remains a challenge.

Langrial acknowledged some progress in tackling sales tax-related fraud but emphasised that tax evasion continues to rise, posing serious risks to revenue generation.

He further highlighted the need to strengthen post-audit mechanisms and called for the enforcement of stricter penalties to stop the issuance of fake invoices, which remain a key tool in tax evasion schemes.