Islamabad, Pakistan – The Federal Board of Revenue (FBR) is intensifying its efforts to clamp down on the issuance of fake and flying invoices, with its latest focus being on a supplier associated with Lucky Cement.
The FBR’s Directorate of Intelligence and Investigation, Inland Revenue, has uncovered a case involving one of Lucky Cement’s suppliers, M/s Al-Abbas Traders, who allegedly issued fraudulent invoices worth millions of rupees. The case has been formally lodged with the Special Judge (Customs & Taxation).
In response to the investigation, Lucky Cement’s management has agreed to repay the evaded tax, depositing Rs. 85 million in input tax into the Federal Treasury.
Addressing the media coverage of the incident, Lucky Cement issued a statement clarifying that the fake invoices from Al-Abbas Traders were handed to ZA Choice, a coal supplier for Lucky Cement. The company emphasized that it follows all sales tax procedures and only purchases coal from FBR-registered vendors. Additionally, Lucky Cement obtains copies of sales tax returns from its suppliers for claimed input tax.
The company further criticized the FBR’s systems for failing to detect non-compliant sellers, which, according to Lucky Cement, results in the harassment of compliant taxpayers who significantly contribute to national tax and export revenues.
Lucky Cement is considering legal action against the officials from Intelligence and Investigation for what it deems as the recovery of undue amounts.
