Tax fraud in Pakistan can land you in jail for 5-10 years

In a move to curb tax evasion, the National Assembly has approved the finance bill and the federal budget for the next financial year, introducing stricter penalties for tax fraud.

The new legislation mandates 5 to 10 years of imprisonment for tax fraud, effective from July 1

The amendment also empowers the Federal Board of Revenue (FBR) to obtain all records and data for sales tax audits, enabling the authority to investigate tax fraud more effectively. 

FBR officers will now have the authority to access records and data from individuals, organisations, or companies, which must be presented during sales tax audits.

The amendment also sets a six-year limit for tax records that can be called by the competent authority of FBR during sales tax audits. 

A dedicated investigation wing will be established within the revenue body from July 1 to further combat tax fraud.

The move aims to strengthen Pakistan's tax regime and ensure greater compliance and accountability.