The Auditor General of Pakistan has uncovered tax irregularities exceeding Rs. 8.31 billion involving Tier-1 retailers that failed to integrate their outlets with the Federal Board of Revenue’s (FBR) Point of Sale (POS) system, according to the audit report for FY2024-25.
The audit found that 1,323 Tier-1 retailers did not connect their business outlets to the FBR’s POS system as required under tax laws. Despite this, they were allowed to claim input tax adjustments worth Rs. 8.313 billion.
The report also criticized tax authorities for failing to initiate timely legal action against the non-compliant retailers.
In its response to the audit, the FBR stated that all cases involving the disputed Rs. 8.313 billion are currently under scrutiny and verification.
The Departmental Accounts Committee (DAC) has directed the FBR to expedite legal proceedings against the retailers involved and ensure the recovery process is completed at the earliest.
The Auditor General further recommended that all Tier-1 retailers be immediately integrated with the FBR’s POS system to prevent similar violations in the future.
According to the report, the same irregularity had also been highlighted in the previous audit. The Auditor General described the matter as a serious concern requiring urgent action.
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