KARACHI: The Directorate of Internal Audit-Customs has highlighted that Customs Port Qasim did not realized the leviable income tax of Rs1.53 billion from M/s Engro Elengy Terminal Pvt Ltd on the import of floating storage and re-gasification unit (FSRU).
Sources told Customs Today that moreover, Collectorate did not collect surcharge on late payment of duty and sales tax. Customs Port Qasim is required to effect recovery total of Rs1.839 billion. Scrutiny of records revealed that goods declarations of M/s Pakistan Railway were cleared without confirming the deposit of leviable duty and taxes. Collectorate is required to provide proof of payment of Rs501.342 million.
Scrutiny of bank guarantee record and PRAL data for 2015-16 revealed that customs securities obtained from various importers were found expired their mandatory period. Customs Port Qasim even after expiry of reasonable time has failed to initiated recovery action/encashment of the same and an amount of Rs467.316 million is stuck up. Corporate guarantees deposited by M/s Halliburton Worldwide Ltd, M/s Sea Land Drilling Contractors, M/s Weatherford Petroleum Services, M/s BGP Pakistan International, M/s Sprinte Oil & Gas Services, M/s Weatherford Oil Tool Limited, M/s Exalo, M/s ENI Pakistan Limited, M/s Geofify Krakow S.A Pakistan, M/s Eastern Drilling Services, M/s Supreme Oil Services under SRO 678(I)/2004 were found expired.
However, no concrete efforts were made by Customs Port Qasim to recover government’s legitimate revenue. Internal Audit highlights that Customs Port Qasim cleared several goods declarations (GDs) in respect of petroleum companies and their contractors without obtaining the requisite corporate guarantees to secure the element of sales tax to the tune of Rs61.324 million.
It is highlighted that an amount of Rs71.181 million is recoverable from M/s MOL Pakistan pertaining to the import of oil well drilling equipment. Scrutiny of record also found that an amount of Rs7.105 million was recoverable from M/s Pak Electron Limited and M/s Bonny International. Collectorate failed to make any efforts for the recovery of outstanding government revenue.
