After a large cement company was hit with a hefty fine, the Federal Board of Revenue (FBR) launched a thorough investigation into the cement industry.
Allegations that the business fabricated input tax deductions using fictitious coal purchase invoices are the basis for this lawsuit.
A network of blacklisted companies involved in dishonest activities to avoid paying sales tax was discovered by investigations.
In response to these findings, the FBR stepped up its examination, which resulted in audits throughout the industry, including one by the Large Taxpayers Office (LTO) in Karachi, which examined another major cement factory.
According to the LTO’s assessment, the cement mill had falsely claimed Rs 14,686,443 in input tax based on invoices from a blacklisted business in September 2022.
