KARACHI: The Sindh High Court (SHC) directed the seizure of tea leaves worth over Rs3 billion. The action follows a ruling against six companies accused of evading taxes on tea imported under the guise of originating from Kashmir.
The companies under scrutiny include KF Food Company, MI Industries, Inqilab Enterprises, Salam Food Industries, Margin Tea, and ZRM Foods. Customs Intelligence initially registered a tax evasion case against these firms in February 2024.
The charges were based on a complaint from the Karachi Chamber of Commerce (KCCI) which highlighted how the smuggled tea was undermining local businesses that complied with tax regulations.
Collector Adjudication Rashid Habib was instructed by the Sindh High Court to expedite the proceedings and deliver a verdict within a month. Director I&I Karachi Mian Masood directed the formation of a dedicated team, including Deputy Collector Darsh Jawahiri and Assistant Director Saud Hasan, to investigate the matter thoroughly. Their diligent efforts were pivotal in advancing the case to completion.
During investigations, Customs Intelligence seized a large quantity of tea being sold in Karachi’s markets, falsely labeled as originating from Kashmir, thereby causing substantial financial losses to local traders.
In its final verdict, the court has mandated that these companies pay the evaded taxes.
Additionally, the seized tea will now be subjected to the appropriate taxes, leveling the playing field for law-abiding businesses.
