PM Shehbaz directs probe to identify those involved in sales tax fraud

Islamabad: (Radio Pakistan) Prime Minister Shehbaz Sharif has directed for initiating investigations to identify institutions, companies, and individuals involved in sales tax fraud.

Chairing a meeting in Islamabad today on reforms within the Federal Board of Revenue, he expressed strong displeasure over past incidents of tax fraud.

He instructed that a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system be conducted by an international consultancy firm. The investigative committee has been tasked with submitting its report within three weeks.

The Prime Minister also directed strict legal action against those identified in the forthcoming report.

During the meeting, he was briefed on ongoing reforms within FBR, particularly in PRAL.

The briefing outlined several key digital security upgrades already implemented in PRAL, including the Audit Vault, Database Protection Wall, Security Operations Center, continuous database monitoring, and other robust digital safeguards.

The Prime Minister was apprised that the upgraded system now has the capability to log a user's IP address whenever data is modified, making tax fraud virtually impossible.

It is particular to mention that a fact-finding committee, formed to investigate the sales tax fraud that began in 2018-2019, had submitted its findings. The committee attributed the fraud to PRAL's outdated digital infrastructure.

It was told that the Prime Minister had previously taken notice of the issue and ordered the formation of the committee.

The briefing emphasized that the fraud stemmed from PRAL's obsolete system, lack of monitoring mechanisms, and an unsecured database.

The meeting was apprised that multiple reforms have already been implemented as part of a broader modernization initiative to address these vulnerabilities.

The Prime Minister was also updated on FBR's participation in the annual World Bank conference held in Washington.

He commended the FBR team for the international recognition received for their case study on reform efforts presented at the conference.