Millat Tractors Limited (PSX: MTL) has denied media reports about being fined Rs. 5.4 billion in sales tax audit discrepancy, saying that the news has been misreported, the tractor manufacturer informed Pakistan Stock Exchange on Monday.
“This refers to a recent news published in the local english daily regarding the imposition of a fine on the Company by the Federal Board of Revenue (FBR) amounting to Rs. 5.4 Billion for Sales Tax Audit discrepancies. The said news is misreported as FBR has not imposed any such fine till the publication of this information,” the stock filing stated.
MTL clarified that FBR has issued a show cause notice to the company on sales tax-related matters based on its own interpretation.
“The Company is of the view that most of the matter(s) taken up in the show cause notice have already been decided by the Lahore High Court, FTO and President of Pakistan and are liable to be dropped in the light of their decisions,” it said.
Other matters are against the factual position, and the company is likely to prevail in these matters, the filing added.
MTL’s statement comes despite earlier reports that FBR had uncovered sales tax discrepancies to the tune of Rs. 13.286 billion after a detailed audit of the company.
In November 2023, the President directed the Federal Board of Revenue (FBR) to restore an investigation against MTL against an alleged inadmissible sales tax refund of over Rs. 12 billion for the tax period 2018-2022.
President had dismissed representations filed by the FBR and the MTL and endorsed the order of the FTO for initiation of recovery proceedings against the said company.
The President in his decision had observed that since FBR has already initiated Audit proceedings against the MTL for Tax Years 2018-2022 which are currently under process, any interference in the matter is likely to prejudice the independence of the competent authority and is thus being avoided.
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