The inspection report of the Federal Tax Ombudsman (FTO) released on Monday (6 September) revealed that the Federal Board of Revenue had to face the loss of Rs 40 billion during the two years from 2017 to 2019. The poor monitoring of the Green Leaf Threshing (GLT) units was reported to be the major reason behind it.
The Federal Tax Ombudsman (FTO’s) review group of GLT units discovered grotesque tax avoidance at the GLT stage, reflecting maladministration of the FBR’s field power because of faulty checking of the GLT units. The FTO has given a review report’ for examination of the workplace of magistrate Inland Revenue, Regional Tax Office, Peshawar, holding local checking of GLT units.
According to FBR’s own findings, there was a significant gap between the tobacco produced and the tobacco used in manufacturing cigarettes. This made it even more clear that tax evasion is taking place at the GLT stage. The FTO has prescribed the FBR to execute ongoing and undeniable issuance of solicitations hindering a wide range of post-seizure checks or information fudging/fraud. The FTO has prescribed the FBR to execute Rule 89 particularly sub-rules (2) and (3) read SRO 1149 (1) dated eighteenth September 2018.
The FTO has additionally coordinated the FBR to lead yearly examination of cigarette tobacco delivered in Pakistan and the utilization of tobacco by all cigarette manufacturing units, for 2019-20 onwards, to measure the deficiency of income brought about by unaccounted tobacco.
IREN KPK Hub needs genuine rearrangement of their official bodies to guarantee uniform examples of consistency, observation, and authorization of GLT units. Officials and authorities with sectoral ability, proficient skill, and inclination may be asked to observe the requirement of this area. If Rule 89 is executed, it would guarantee; Real-time and legitimate issuance of invoices which will prevent any sort of data forgery. The work of IREN turns out to be a lot simpler as while blocking any vehicle or actually taking a look at any distribution center, the precision and timing of the invoices can be cross-checked from the framework.
