ISLAMABAD: The Directorate of Intelligence and Investigation, Inland Revenue, has detected an estimated tax evasion of Rs460 million in two cases.

The directorate officials raided the business premises of a steel mills in Ferozwala, Sheikhupura district, and found the factory was manufacturing steel ingots and billets.

During the initial investigation, it was revealed that the steel mills had filed nil sales tax/ Federal Excise Duty returns for one year, however, electricity meter installed at the premises showed huge power consumption during that period.

On the basis of initial scrutiny of available information and after fulfilling legal formalities, the Lahore-based directorate officials carried out the raid and impounded relevant documents and records.

According to the initial estimate, Rs400m tax evasion is involved in the case. The record is under scrutiny at the Lahore directorate and further legal action will be taken to recover the evaded taxes and duties.

An official announcement of the Federal Board of Revenue (FBR) said that in a similar operation, Directorate of Intelligence & Investigation, IR Multan raided a unit located in the Industrial Estate, Multan under Sections 38 and 40 of the Sales Tax Act, 1990.

This unit was engaged in the manufacture of polypropylene bags. After scrutiny of record, it transpired that the unit was blacklisted by the FBR but despite that, it was engaged in the manufacturing of bags for a long time. The sales tax number was also not got restored by the unit.

Published in Dawn, September 24th, 2021