KARACHI: The Federal Tax Ombudsman has issued orders for legal action against the tractor manufacturing company after confirming the fraud of more than 10 billion on the report sent by FBR with evidence.
FBR sources said that the tractor manufacturing company is accused of fraud of more than 10 billion rupees in government relief for farmers. Sources said that the tractor maker claimed sales tax refund on fake documents and flying invoices.
According to the report, the government had given billions of rupees subsidy to deserving and poor farmers for purchase of tractors under a scheme. FBR has initiated action against owners and dealers of tractor manufacturing companies for fraud recovery. The investigation into fraud and tax evasion has been entrusted to the Directorate General of I&I Inland Revenue.
Sources said that under the government scheme, the subsidy on the sale of thousands of tractors in the name of farmers was received by the factory owners in the form of refunds and with the connivance of FBR officials, a refund of more than 1 billion rupees was approved. The sale of tractors was revealed and the farmers were found to be unaware of the purchase of tractors.
Sources said that big dealers got tractors at discount price and sold tractors at 100% commercial prices, in this way factory owners and dealers earned double unfair profits by claiming refund from FBR. In this regard, FBR has been continuing the series of data investigations for the past several years.
It should be noted that during the previous regime, tractors scheme was started at subsidized rate to deserving farmers.
