KARACHI: The Post Clearance Audit (PCA) has unearthed a massive tax evasion of Rs389 million by 13 importers of sunflower seeds through mis-declaration.
PCA Deputy Directors Sajid Baloch and Iqbal Memon, during the audit of import data of sunflower seeds classifiable under PCT Heading 2306.3000, observed that certain importers are mis-declaring the classification of ‘sunflower seeds extraction’ by declaring it under PCT heading 2306.9000 in order to avail undue benefit of 8th Schedule of the sales tax.
The sunflower seeds extraction is by description classifiable under PCT heading 2306.3000, where no benefit of sales tax is admissible. Sunflower seeds extraction is correctly classifiable under PCT 2306.3000, chargeable to Customs Duty 10%, Sales Tax 17%, Additional Customs Duty 1.0 % and Income Tax 6.0%.
