KARACHI: As many as 17 show cause notices have been issued to various importers for evading taxes and duties to the tune of Rs 83.9 million on import of silos classifiable under PCT.
According to sources, the Pakistan Customs’ Directorate of Post Clearance Audit (PCA) Karachi had detected sales tax evasion to the tune of Rs 83.9 million on import of silos. It was found that the importers availed concession of 8th (sales tax) dated 25.6.2014 and paid 5 percent sales tax on the import of grain storage silos with all standard accessories classifiable under PCT 9406.0030.
“Since the imported silos are for storage purpose and do not qualify the definition of machinery and equipment, therefore, the benefits of reduced rate of sales tax is not admissible in these cases and are chargeable to sales tax at the rate of 17 percent,” sources added.
The sources further disclosed that these silos were imported from different countries, including Turkey, China and the United States.
Adding, the Directorate of PCA-Karachi forwarded the contravention report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, sources concluded.
The show cause notices have been issued to M/s Al-Meezan Poultry Feeds – Karachi for Rs 1.42m tax evasion; M/s Dummer Flour Mills – Faisalabad for Rs Rs3.81m; M/s Asia Flour Mills – Sheikhupura Rs 2.24m; M/s Faisalabad Oil Refinery Pvt Ltd Rs 3.33m; M/s Ahsan Feed Mill – Gujranwala Rs 0.54m; M/s Al-Hamza Flour Mills Pvt Ltd – Karachi Rs 4.4m; M/s Ali Daniyal Industries – Karachi Rs 3.24m; M/s Interlink Corporation – Lahore Rs 0.15 m; M/s Ghani Hilal Feed Mill – Lahore Rs 7.19m; M/s Salwa Feed Mills Pvt Ltd Rs 4.56m; M/s Royal Roller Flour Mills – Lahore Rs 5.33m; M/s Rameez Trading Company – Lahore Rs 0.42m; M/s Mukhtar Feeds – Summundari Rs 2.62m; M/s Islamabad Feeds Pvt Ltd Rs 16.49m; M/s JSK Feeds Ltd Rs 5.83m; M/s Pak Agro Oil Mills Rs 1.97m; and M/s Jadeed Feeds Industries – Rawalpindi for Rs 20.62m tax evasion.
The adjudication proceedings against these importers have been fixed on various dates starting from August 26, 2015.
