40 percent of registered taxpayers do not file sales tax forms

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Forty percent (40%) of the taxpayers registered with the Sales Tax Directorate do not submit their sales tax forms. They cheat the government revenue and honest taxpayers by engaging in the activities of fraud.

40% Non filers of sales tax forms

Dr. Waqar Masood, Special Assistant to the Prime Minister for Revenue, said that the issue of flying invoices has become a difficult task for the (FBR). According to him, 250,000 people registered with the sales tax directorate out of which 105,000 (40%) do not submit their sales tax forms.

It should be noted that the government has also withdrawn the zero rates sales tax from five export-oriented sectors from July 1, 2019 and now all the industrial sectors are subject to 17% sales tax. This high tax rate has forced traders to deceive the treasury and honest taxpayers by involving the curse of flying receipts. The FBR has recently uncovered such groups of tax evaders and the Directorate General of Intelligence and Investigation (Inland Revenue) has initiated criminal proceedings against those responsible.

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Matter of fake & flying invoices

Bogus companies, which exist only on papers, issue fake invoices. Then they claim refund from the sales tax department of FBR on raw material which never actually purchased. Further, flying invoices are used by registered taxpayers to claim sales tax refunds from the FBR by showing excessive use of raw materials.

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