- Web Desk
- 3 Minutes ago
Fake invoices cause Rs6 trillion loss to exchequer
ISLAMABAD: The national exchequer has suffered a massive revenue loss of up to Rs6 trillion due to the use of fake or flying invoices by fraudsters, sources said.
According to sources, the fraudsters have filed fake sales tax returns of dummy firms and claimed illegal input tax adjustments or refunds against bogus invoices. They said that the sales tax fraud has increased after the introduction of facilitation, automation and easy ways to get sales tax registrations.
Sources explained that flying invoices have been used in different ways. In some cases, the input is registered but the output is not, while in others, the output is registered but the input is not. They said that both scenarios result in evasion of sales tax.
The Federal Board of Revenue (FBR) data shows that there are 397,000 sales tax registered persons, out of which around 30 per cent have obtained sales tax registration to obtain fraudulent sales tax refunds and conduct the business of fake and flying invoices. The data includes dormant, active and inactive taxpayers who are still registered with the sales tax department.