KARACHI: Pakistan Customs’s Post Clearance Audit, Directorate has detected massive tax evasion/short payment of taxes and duties to the tune of about Rs 65 million by at least 20 importers on import of LED lights, LED panel, SMD lights, decorative lights etc by misusing Fifth and Sixth Schedule benefits. The audit observations have been been issued under Section 26 and 32 of the Customs Act, 1969.
The sources told Customs Today that PCA Karachi Directorate while scrutinizing import data found that the importers had imported LED Lights, LED Flood Light, Outdoor Panel Lights, PED Fiber Light, SMD Panel Lights, Down Light, Penal Light, Decorative Lights, etc through Customs Appraisement West/East and claimed benefits of Fifth Schedule and Sixth Schedule.
While, the exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above. Whereas, clause 77 part-IV Second Schedule of Income Tax, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only, according to sources.
“The examination staff in their examination has not confirmed that the imported LED lights and batteries are for solar use. It appears from the examination report that the imported items are for general use as as these are operative/works under the normal thermal/hydel power sources normally used in Pakistan”, sources added.
The importers who have been detected with evasion of duties/taxes includ: M/s Electroline, M/s ASK Technologies, M/s Kinjhar International, M/s Penta Gon International, M/s Zah Enterprises, M/s Num Traders, M/s Bhutta International, M/s Usman and Aziz Trading Company, M/s Dee Sons Enterprises, M/s Star Communication, M/s Zamir Trading Company, M/s Electric Lighting Agencies, M/s Tayyab Traders, M/s Sharif International, M/s JW Enviro Pakistan Pvt Ltd, M/s Nizam Energy Pvt Ltd, M/s Illuminate Ligthing, Galaxie Lighting Solutions and Orient Electronics Pvt Ltd.
These importers have been advised to pay the short-paid taxes/duties as the earliest.
