ISLAMABAD: Following the directives of the Presidency, the inquiry by the audit department of the Federal Board of Revenue (FBR) has finalised a demand of Rs18 billion in sales tax on the tractor maker.

The case relates to an inquiry by the FBR against Millat Tractors Ltd (MTL), related to sales tax thefts under benami laws but the company challenged the action by the FBR at the Federal Tax Ombudsman (FTO).

The FTO issued three orders against the company during 2022-2023, and the company and the FBR filed seven appeals with the President of Pakistan from Jan 31 to March 2023.

On Nov 11, 2023, the president directed FBR to restore the investigation against MTL over an alleged inadmissible sales tax refund of over Rs12bn obtained on ‘Benami’ transactions for the tax period 2018-2022.

The compliance report submitted by the LTU Lahore to the President of Pakistan, recently, has highlighted that demand of Rs18.21bn has been created against the said company in line with the recommendations of the FTO.

Published in Dawn, February 4th, 2025