Tax-free tea meant for AJK sold in Karachi

Directorate of Customs Intelligence unearths tax evasion of Rs2b

KARACHI:

The Directorate of Customs Intelligence Karachi has launched a significant crackdown on individuals exploiting tax exemptions meant for the import of black tea intended for Azad Jammu and Kashmir (AJK).

According to sources familiar with the matter, black tea valued at over Rs15 billion was imported under the guise of forward shipment to AJK, only to be sold in the local market instead. This scheme has led to tax evasion totalling more than Rs2 billion on black tea imports.

Acting on intelligence inputs, the Directorate's raiding team conducted a targeted operation, seizing 850 tonnes of black tea valued at Rs730 million from a warehouse.

Sources further revealed that Customs Intelligence Karachi has filed cases against six importing companies implicated in tax evasion. Additionally, several other companies allegedly involved in similar tax evasion schemes regarding black tea imports have also been identified, with enforcement actions ongoing against them.

In response to the Customs Intelligence report, the AJK government has established a Joint Investigation Team (JIT). The JIT report indicates that taxes amounting to Rs2.55 billion have been evaded in previous imports. Sources indicate that Customs Intelligence, in collaboration with intelligence agencies, will pursue recovery of the embezzled revenue.

Published in The Express Tribune, April 29^th, 2024.