The Large Taxpayers Office (LTO) Lahore has recovered Rs1.4 billion over six months through a post-refund audit initiative designed to scrutinize sales tax refunds issued under the Federal Board of Revenue’s (FBR) FASTER system. According to officials, this marks the first such exercise aimed at strengthening oversight of refund claims while improving revenue collection.
Post-Refund Audit Cell Established
In December 2025, LTO established a dedicated Post Refund Audit Cell to analyze billions of rupees in refunds disbursed monthly to the textile sector through the FASTER system. The initiative was initially focused on the textile industry but was later expanded to include the gas and petroleum sectors, resulting in additional recoveries.
Officials stated that the Rs1.4 billion recovered over the six-month period demonstrates the potential of post-refund audits as an effective and sustainable mechanism for enhancing tax revenues while ensuring greater transparency and compliance in the refund process.
Impact on Tax Administration
The officials added that the initiative reflects the FBR’s efforts to improve tax administration through targeted audits and stronger monitoring of refund payments. The success of this pilot program may lead to further expansion across other sectors and regions.
