Customs unearth taxes evasion of Rs775mn

October 12, 2014 Off By Web Desk

KARACHI: Directorate of Customs Intelligence and Investigation Karachi has unearthed Rs775million evasion of duty and taxes through misuse of SRO 1125 and the cases have been sent to the adjudicating authorities, a release said here Monday.

On receipt of information and instructions from Directorate General of Intelligence & Investigation-FBR Headquarters Islamabad, the regional office of Customs Intelligence, Karachi unearth massive evasion of duties & taxes to the tune of approximately Rs.775 million under the heads of custom duty, sales tax and withholding tax through misuse of SRO.1125 of 2011 dated 31st December, 2011 by various importers. Cases have been sent to relevant Adjudicating Authorities.

According to details various importers were engaged in the import of fabric/yarn availing illegally the concession of Sales Tax by availing the advantage of SRO.1125. It is pertinent to mention that under this SROs concession under custom duty, sales tax & withholding tax is only granted where the importer/unit is also having manufacturing facilities and has availed manufacturing status. Credible information was received by the Director General, Intelligence & Investigation-FBR, Islamabad, that a number of importers despite having no manufacturing unit and status were involved in gross misuse of SRO.1125 in the import of fabric/yarn causing colossal loss of revenue to the national ex-chequer.

An in-depth scrutiny and inquiry of their past clearances revealed that by illegally importing fabric/yarn under the garb of SRO.1125 of 2011, they had evaded an amount of approximately Rs.775 million under the head of duty & taxes. Taking legal action against such entities Directorate of Customs Intelligence, Karachi framed contravention and seizer reports against them and forwarded to relevant Adjudicating Authority so that evaded amount of duties & taxes are recovered. All such subject import consignments were cleared from different ports of Model Customs Collectorate Appraisement (East), Appraisement (West) and Port Qasim. Total value of such consignment is more than Rs.3000 million.

On a query Director Customs Intelligence, Karachi, Muhammad Asif Marghoob Siddiqui confirmed that such cases involving amount of duties & taxes as quoted above have been made. He further added that Inland Revenue Wing of FBR has also testified that the unit are non-existent and were causing massive loss of revenue to national ex-chequer.

He mentioned that previously also during the month of April-May 2014 Directorate of Customs Intelligence, Karachi detected evasion of duty and taxes for violation of SRO.1125 to the tune of Rs.576 million.

Furthermore 53 such containers were also seized at Karachi port by Customs Intelligence Karachi wherein duties & taxes amounting to Rs.225 million were being evaded on account of miss-declaration of value and misuse of SRO.

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