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

Islamabad (Web Desk): Prime Minister Shehbaz Sharif has ordered a comprehensive inquiry to trace and expose all institutions, firms and individuals linked to sales tax fraud.

While presiding over a meeting in Islamabad focused on reforming the Federal Board of Revenue (FBR), the prime minister expressed serious concern over previous incidents of large-scale tax evasion and directed that immediate steps be taken to ensure accountability.

He instructed that a forensic examination of the Pakistan Revenue Automation Limited (PRAL) system be carried out by a globally recognized consultancy firm to identify the root causes and vulnerabilities that enabled such fraudulent activity.

The committee tasked with the investigation has been given three weeks to submit its findings, after which those implicated will face strict legal consequences.

Officials briefed the prime minister on the ongoing digital and structural reforms within the FBR, highlighting significant improvements made in PRAL’s operational framework.

The updated system now includes advanced cybersecurity features such as an Audit Vault, Database Protection Wall, Security Operations Centre, and continuous database surveillance, all aimed at safeguarding data integrity and curbing manipulation.

It was further explained that the new digital infrastructure is capable of recording the IP addresses of users who make any alterations to data, significantly reducing the possibility of future tax fraud.

The meeting also reviewed the findings of a fact-finding committee that had been constituted to probe the sales tax scam dating back to 2018–2019.

According to the report, the fraud was primarily facilitated by PRAL’s obsolete technology, weak monitoring mechanisms, and insufficient database security.

PM Shehbaz had earlier taken notice of the issue and instructed the formation of the committee to determine accountability.

Officials informed the meeting that several reforms have already been put in place as part of a comprehensive modernization program to rectify systemic weaknesses and strengthen transparency within the FBR’s digital operations.

The prime minister was additionally briefed on the FBR’s participation in the World Bank’s annual conference in Washington, where Pakistan’s case study on tax reform initiatives received notable recognition.

Appreciating the team’s efforts, PM Shehbaz commended the FBR officials for presenting Pakistan’s reform model on an international platform.