Coordinator to the Federal Tax Ombudsman Saif Ur Rehman on Sunday expressed serious concern over the rising trend of over-invoicing on imports, warning that the practice is causing billions of rupees in losses to the national exchequer and poses a significant threat to the country’s economic stability. Talking to a delegation of the business community leaders here, Saif Ur Rehman explained that over-invoicing involves the artificial inflation of prices on import invoices, allowing companies to illegally transfer capital abroad, evade taxes, and claim unlawful rebates. He stressed that such illicit financial flows not only drain foreign exchange reserves but also widen the trade deficit and severely hamper revenue collection efforts. “If left unchecked, over-invoicing undermines investor confidence, fuels corruption, promotes money laundering, and disrupts fair competition in the market,” he said. “It severely disadvantages genuine businesses that comply with laws and pay their fair share of taxes.” He called for immediate and stringent action against companies engaged in this malpractice.
Measures such as thorough audits, real-time import verification systems, and enhanced coordination among the FBR, FIA, and State Bank of Pakistan were recommended to curb the practice effectively.
Saif Ur Rehman further proposed that repeat offenders should be permanently banned from conducting import-export business in Pakistan. He emphasized the need for transparent digital systems, improved inter-agency collaboration, and strong whistleblower protections to eliminate this deep-rooted economic threat. “Only a firm, uncompromising approach can safeguard the national economy from such acts of financial sabotage,” he added.
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