More than Rs2.2tr ‘lost to tax evasion’ in two years: FBR

The government on Thursday reported more than Rs2.2 trillion worth of tax evasion through ‘fake’ and ‘flying’ invoices over the past two fiscal years, highlighting the massive scale of loss of public monies due to weak enforcement. Testifying before the Senate Standing Committee on Finance and Revenue, Federal Board Of Revenue (FBR) Member Hamid Atique Sarwar said that more than Rs873bn in ‘fake’ and ‘flying’ invoices had been unearthed last year, on top of Rs1.37 trillion a year earlier, taking the total to Rs2.25tr in two years. “This is almost one-third of the total” tax collected on the customs side, he said in response to calls from the business community for a relaxation in tax laws under the Finance Bill 2025-26. Mr Sarwar said such massive loss of revenue could not be allowed to continue, adding that taxmen misusing their powers had been proceeded against.