Pakistan government targets revenue leakages to boost transparency and trade

The Pakistani government is focusing on reducing revenue leakages, according to Finance Minister Muhammad Aurangzeb. He emphasized efforts to digitalize the revenue system and improve transparency to enhance trade and investment. Aurangzeb noted discrepancies in sales tax adjustments among companies, particularly in the beverage sector. For example, The Coca-Cola Company claims a 7% tax adjustment, while others report up to 20%. The Federal Board of Revenue (FBR) has identified significant excess input tax claims, totaling Rs15 billion, in the aerated water sector. The FBR's study highlights that fake tax claims often arise from purchases of sugar, plastics, and services.