ISLAMABAD – The Auditor General of Pakistan has identified tax irregularities amounting to more than Rs8.31 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 report said 1,323 Tier-1 retailers did not connect their business outlets to the FBR’s POS system as required under tax laws but were nevertheless allowed to claim input tax adjustments worth Rs8.313bn.
The audit also criticised tax authorities for failing to initiate timely legal proceedings against the non-compliant retailers.
In its response, the FBR said all cases involving the disputed Rs8.313bn were under scrutiny and verification.
According to the report, the Departmental Accounts Committee (DAC) directed the FBR to expedite legal action against the retailers concerned and ensure the recovery process was completed at the earliest.
The Auditor General recommended that all Tier-1 retailers be integrated with the FBR’s POS system to prevent similar violations in the future.
The report noted that the same issue had also been highlighted in the previous audit and described the recurring irregularity as a matter requiring urgent attention.
