KARACHI: The Customs’ Directorate of Post Clearance Audit-Karachi has detected evasion of taxes/duties to the tune of Rs 25 million by M/s Pakistan International Airlines by misusing SRO 575(I)/2006.
According to details, the PCA-Karachi Directorate, during scrutiny of import data noticed that M/s PIA Corporation is entitled to avail facility under S.No 29 of SRO 575 (I)/2006 dated 5.6.2006.
The exemption is available to S.No 29 that includes aircraft spares parts, tyres, navigational equipment, accessories for maintenance and operations of aircraft, chemicals, lubricants and paints, air tickets, aircraft carpet, aircraft fabric, skydrol (brake fluid), laminated sheet, aluminum alloy sheets, aluminum alloy extrusions, aircraft seats, tools, test equipment, lift jackets, spares of TGS vehicle, meals trolley, ball hand seal, standard units, exterior washing liquid, air head set electronics, air head set pneumatic and sealants.
While on examination, it transpired that thermal paper boarding cards and airway bills are not entitled to the benefit of SRO 575(I)/2006. However, in disregard to the above M/s PIA has not only claimed facility under S No 29 of SRO 575(I)/2006 in 42 GDs but has cleared the goods under wrong PCT 4821.9000 which is for paper and paper boards labels not printed.
The imported thermal boarding passes airway bills and tags are surely printed hence the same are correctly classifiable under PCT 4821.1090 at customs duty at 25 percent.
Besides, the value is also under stated in majority cases. The value of goods as per statement if calculated at the assessed rate are Rs 60,842,537 and the evaded customs duties come to Rs 15,210,634 and differential sales tax Rs 5,904,121 and differential income tax Rs 2,594,490 and special federal excise duty Rs 608,425. The total evaded amount at the assessed rate comes to Rs 24,317,670.
The PCA directorate has instructed M/s PIA to pay the evaded amount of Rs 24,317,670 immediately.
