Rs540m tax, duties evasion uncovered
In terms of number of goods, 27 items have been targeted for the first time having annual import value of just $1.3 billion. Duties on 31 goods having annual import value of only $1.9 billion have been increased further. PHOTO: FILE
The Customs intelligence has uncovered massive tax evasion to the tune of a whopping Rs540 million during September 2024, sources told The Express Tribune on Thursday.
According to the Directorate of Customs Intelligence and Investigation, more than Rs462 million in customs duties were misappropriated through the exploitation of exemptions on a consignment of pipes and fittings.
The tax evasion was detected during a review of a goods declaration filed with the Customs Department.
The importer, M/s Enertech Water (Pvt) Ltd, had claimed an exemption from sales tax under the Sixth Schedule of Table Three, Serial 22 of the Sales Tax Act, 1990.
This exemption, however, is reserved for import consignments linked to projects that have an implementation agreement with the federal government, which the importer did not possess.
Further investigation revealed that the importer had also unlawfully claimed an exemption from customs duty under Serial 10 of the Fifth Schedule of the Customs Act, 1969.
The Directorate was able to recover Rs462 million in duty taxes fraudulently claimed by the importer.