ISLAMABAD – The annual tax evasion worth billions of rupees in various sectors of the country has been exposed, and the Federal Board of Revenue (FBR) has decided to implement camera monitoring in 17 sectors to prevent sales tax evasion.
This disclosure was made on Wednesday during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwala.
During the meeting, FBR Chairman Rashid Mahmood Langrial briefed the committee, saying that instead of 16, only four monitoring cameras will be installed in the tiles sector. He added that every tile manufactured will be monitored, as tile manufacturing companies provide inaccurate production data that cannot be trusted.
The FBR chairman stated that tile manufacturing companies declare underproduction, and the FBR may face a revenue shortfall this month. He added that no additional tax measures have yet been decided to cover shortfalls from January onward, and cameras have first been installed to monitor sugar mill production.
Langrial said that the sugar mills are owned by ministers, and the Prime Minister has instructed that all must be monitored. The FBR will install cameras in every sector to monitor production.
He further revealed that this year, an additional Rs76 billion will be collected from the sugar sector and Rs102 billion from the cement sector. In the tiles sector, annual sales tax evasion amounts to Rs30 billion, prompting the decision to install cameras.
Rashid Langrial added that if tile manufacturing companies refuse to install cameras, the industry will be shut down. Cameras will monitor kilns, packaging, and in-and-out operations of tile manufacturing companies.
