Business

Millat Tractors fined Rs5.4bn after sales tax fraud exposed

Published by
Digital Desk

LAHORE: The tax audit of Millat Tractors Ltd (MTL) conducted by the Large Taxpayer Office (LTO), Lahore, has found major sales tax differences of up to Rs13.28 billion.

The audit of the country’s leading tractor manufacturing company has been submitted to the Federal Tax Ombudsman (FTO).

According to the reports, issuing a show-cause notice for the tax year 2022 to explain sales tax discrepancies of Rs13.28 bln, the Large Taxpayer Office has imposed a penalty of Rs5.41bn, besides a sales tax demand of Rs13.28bn to Millat Tractors Ltd.

Furthermore, the LTO Lahore informed the Federal Tax Ombudsman that the quasi-judicial proceedings are underway after the issuance of the show-cause notice under Section 11 of the Sales Tax Act 1990.

Earlier, the President of Pakistan had directed the Federal Board of Revenue (FBR) to restore the investigation against MTL into alleged inadmissible sales tax refunds of over Rs12bn for the tax period 2018-22.

The president had dismissed representations filed by the FBR and the MTL and endorsed the FTO order to initiate recovery proceedings against the company.

Digital Desk

Recent Posts

Latest Gold Rate in Pakistan – June 4, 2026

KARACHI: A significant decline has been recorded in the price of gold in bullion markets across…

12 minutes ago

Pakistan’s timely policy may shield it from proposed U.S. additional tariffs

ISLAMABAD (Rizwan Abassi): Pakistan’s recent trade policy has gained significance amid reports that the United…

14 hours ago

Govt set to brief PPP on crucial legal changes ahead of Budget

ISLAMABAD: Important legislation may be considered in the negotiations between the Pakistan People's Party (PPP)…

14 hours ago

No visa agent needed! UK High Commissioner shares step-by-step visa guide

ISLAMABAD: If you are thinking of applying for a UK visa from Pakistan and are…

14 hours ago

Famous Anti-biotic medicine ‘Azomax’ declared fake

LAHORE: The Drugs Control of Punjab declared a Class-I alert after the lab tests confirmed…

15 hours ago

Unmarried women can now get financial support from BISP

KARACHI: The government has decided to include unmarried women above the age of 35 in…

15 hours ago