Millat Tractors Denies Reports of Any FIR Due to Alleged Tax Fraud

Millat Tractors Limited (PSX: MTL) has denied media reports of any First Information Report (FIR) against it or its chief executive officer on an alleged tax fraud case against it, MTL informed the main bourse on Tuesday. “This news is fabricated and bereft of facts. There is no FIR lodged neither in the name of the CEO of tractor manufacturing company or the tractor manufacturing company. This is part of a malicious campaign with malafide intent,” the stock filing stated. ProPakistani reported on Sunday that the Special Judge Customs & Excise Taxation Karachi will take up the matter of alleged tax fraud on fake/flying sales tax invoices being committed by a Lahore-based leading tractor manufacturing company on the next date of hearing i.e. August 27, 2024. We had learnt at the time that the CEO of the said company is accused in FIR Number 1 of 2022 lodged before Customs & Taxation Court Karachi. It has been alleged by the complainant that the MTL CEO has committed tax fraud with farmers worth billions of rupees as he has not allowed the benefit of SRO.1248(I) 2020 & SRO.563(I) 2022. There are multiple issues involved in the said tractor manufacturing company, according to the case filing. The Large Taxpayers’ Office, Lahore, (FBR) has detected serious sales tax discrepancies to the tune of Rs. 13.286 billion. According to the audit report submitted by the LTO Lahore to the Federal Tax Ombudsman (FTO), the LTO has also calculated a penalty of Rs. 5.414 billion besides the sales tax involved of Rs. 13.286 billion. It has also been alleged in the Challan that a number of other individuals and shell companies have taken benefit from this scam.