KARACHI: The Appraisement West has unearthed huge scam of misusing benefit of sales tax for import of styrene butadiene rubber under SRO 1125(I)/2011, involving short recovery of sales tax and other taxes amounting to Rs61.63 million.
Appraisement West Collector Shahnaz Maqbol ordered inquiry into the scam, over which scrutiny of previous imports since 2013 by commercial importers of styrene butadiene rubber availing the benefit was checked which revealed that 53 consignments were imported and cleared through Appraisement West.
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Earlier, a team was formed under the supervision of Deputy Collector Imran Rasool. Accordingly two consignments declared to contain SBR claiming benefit of under PCT 4002.1900 were detained for detailed scrutiny. Consequently, it has been found that the importers have declared the description as styrene butadiene rubber only and claimed the benefit of sales tax under SRO 1125(I)/2011, which is only extendable to a certain class of styrene butadiene rubber (latex).
In accordance with the subject SRO, the consignments of styrene butadiene rubber having specified properties of grade 1502 and latex are entitled for benefit of sales tax exemption, whereas no other product classifiable under residual heading of others is entitled the benefit of aforesaid SRO. Therefore, a short recovery of sales tax and other taxes is worked out to Rs6.24 million.
