KARACHI: The Federal Board of Revenue (FBR) has blacklisted another 60 companies for filing fraudulent and bogus refund claims and input adjustments of sales tax.

The action has helped save around Rs400 million to national exchequer. Official sources disclosed on Monday that the FBR had earlier blacklisted around 812 units. All these cases were decided after taking due course of law and compliance.

A high official of FBR’s Regional Tax Office-II, Karachi, said that these companies have been blacklisted after they were given show-cause notices and reminders. He, however, said they still have a chance to file appeals with the Commissioner of Appeals or the Appellate Tribunal. Futhermore, the FBR has asked its field formations to register FIRs against those companies which have been blacklisted for filing bogus and fake refund claims, sources added.

Tax expert Syed Rizwan Shoaib said that the FBR should act fast against such unscrupulous elements and once they are identified, field formations should immediately take action and blacklist them and initiate legal action against them for causing colossal revenue loss to the exchequer.

The FBR thrice in the past had introduced a refund system in sales tax, but each time it had to suffer huge revenue loss towards fake and bogus refund claims.

A single case of fake refund claims to the tune of Rs350 million was unearthed by the sales tax department in the past and it was popularly known as ‘Bawan Shah’ case in revenue and trade circles, he added.

The official list of 60 blacklisted companies involved in fake and bogus refund claims in sales tax has been made available to Dawn by FBR’s field offices in Karachi.

They are: M/s Nisar Ahmed Shoe, UBHO Chemical, Fahad International, M I Traders, Sajid Traders, Capital Corporation, Mehmood Enterprises, Chemco, Gul Trading Corporation, Akash and Company, Shahid Impex, Farid and Company, B & M Impex, Nine Star International, A A Enterprises, Nadeem Impex, Sonic Packages, Al-Aziz Artoflex, Pak-China Traders, Layla Traders, Abbasi Trader, Maxtor Trading, Ali Trader, Wali Enterprises, F T B and Company, In Pakistan Traders, Ahmed International, Sun Shine International, Sajjad Traders, Majeed Enterprises, Nasir Enterprises, Yasin International, Iqbal and Sons, M M Traders, N & K Impex, Zain Impex, Rani Traders, Uzma International, Iqbal and Company, The Importer, Asim Traders, Umer Traders, A to 1 Traders, Pak-Business Traders, Arif Traders, Younus Enterprises, Sonic Packages, Qazi International, Nisar Ahmed Shoe, Z A Enterprises, Capital Corporation, M B Trading Company, N S Corporation, Gul Trading Corporation, Auyab Traders, Fiza Enterprises and Yafha Enterprises.

Official sources said action against all these companies has been taken under Section 21(2) No 3211 (dated 14-03-2013).

He further said that by making their names public, it would help genuine traders not to enter into any business deals with the blacklisted companies.