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  • Mar 29th, 2004
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A Central Board of Revenue (CBR) survey has revealed that 112 polypropylene industries have been on tax evading spree and were thus causing loss to the national exchequer of billions of rupees.

The survey carries number of looms, location of each industry along with its tax number, tax paid and evaded during the year of survey ie 2000-01.

Inaction on the part of tax authorities against polypropylene industries despite the fact that almost 99 percent functional units were indulging in massive tax evasion is strange.

Interestingly, after going through the entire exercise and getting requisite information, the report was pushed under the rug by the tax authorities themselves and it provided golden opportunity to tax dodgers to keep on enjoying full liberty of minting money.

Another side of the story is that during the last few years polypropylene industrialists were expanding their units.

Some units have gone up 300 percent more than their original numbers of looms but none of them was paying due tax.

The survey was conducted in all major cities including Karachi, Lahore, Faisalabad, Peshawar, Gujranwala, Rawalpindi/Islamabad and Quetta and several others.

Facts speak themselves that such massive tax evasion was not possible without tax authorities' involvement.

The survey divided Karachi into two parts--Karachi East and West.

KARACHI EAST: Polypropylene Products Limited evaded tax to the tune of Rs 8.770 million in just one year of survey 2000-01; Poly Cloth (Pvt) Limited (Rs 7.348 million); Bambino Plastic (Pvt) Limited (Rs 2.318 million); and Mustafa Poly Products Industries (Rs 0.948 million).

KARACHI WEST: Polymat Industries (Rs 0.798 million); Plastic Bardana Industries (Rs 1.183 million); IMI Industries (Rs 1.537 million); Pothia Industries (Rs 0.946 million); Al-Zohra Poly Packages (Rs 2.963 million); Al-Harram Poly (Rs 1.422 million).

Pak Japan PetroChem Limited (Rs 1.896 million); Prime Plastics (Rs 2.607 million); Mehran Polypropylene Company (Rs 1.422 million); Mayani Poly Packages Pvt Limited (Rs 1.185 million); Plastic Sacks Pvt Limited (Rs 3.674 million); Fothis Industries (Rs 2.607 million).

Amin Synthetic (Rs 1.896 million); Universal Polypropylene (Rs 1.541million); Mehdi Polytex Industries (Rs 1.896 million); Haneeves Polypropylene Sacks Limited (Rs 1.422 million); Imran Polypropylene (Pvt) Limited (Rs 1.896 million); Pak Japan Packages (Rs 1.422 million); and National Poly Sacks Limited (Rs 1.837 million).

FAISALABAD: Faisalabad-based units, which were found involved in tax evasion included: Sharif Sons Polypropylene (tax short paid Rs 4.725 million); Kohistan Polypropylene (Rs 1.541 million); Mughal Polypropylene (Rs 1.778 million); Riaz Sajjad Polypropylene Industries (Rs 2.267 million); Three Star Polypropylene Industries Rs 1.659 million); and Mian Traders (Rs 1.185 million).

GUJRANWALA: The survey showed that Madni Poly Corporation was the only polypropylene industry in this city of industries with 36 looms and it did not bother to pay even a single penny to the national exchequer in 2000-01, whereas with 36 looms its taxable amount for 2000-01 stood at Rs 4.267 million.

It's worst kind of tax evasion which is going on unabated but tax machinery is hardly concerned about such huge tax evasions.

Investigations carried out by this correspondent indicated that Madni Poly Corporation has expanded from 36 looms in 2000-01 to 76 looms in 2003-04 but tax authorities are yet to move against this tax evading unit to ensure that it was honouring tax system and paying due taxes.

MULTAN: According to the survey, all four polypropylene units established in Multan were enjoying tax evasion and those who were supposed to bring them into tax net to collect rightful amount were either party in money making game or they did not want to move in to protect national interest.

These units as per survey included Saba Packages (Rs 0.431 million); S.G. Polysacks (Pvt) Limited (Rs 0.083 million); Pakistan Polypropylene Packages Limited (Rs 8.889 million); and Habib Rehman Poly (Rs 2.844 million).

LAHORE: Next comes Lahore-a city which plays pivotal role in generating economic activities but like other cities its polypropylene industrialists were also indulging in tax evasion.

The list of Lahore-based polyproplene tax evaders is much larger than other cities.

The survey indicated that as many as 43 polypropylene units were listed as short taxpayers.

The list included Buraq Poly Fabrics (Rs 3.357 million); S. F. Plastic Industries ( Rs 4.730 million); Capital Poly Product ( Rs 2.020 million); Bismillah Poly Propylene (Rs 0.948 million); Pak Poly Products (Pvt) Limited (Rs 1.693 million); A B S Bags (Pvt) Limited (Rs 1.780 million).

Punjned Poly Propylene Industries (Pvt) Limited (Rs 1.422 million); Poly Packages (Pvt) Limited (Rs 1.150 million); Osprey International (Pvt) Limited (Rs 4.700 million); Swift Paper & Chemical (Rs 1,842 million); Poly Flex (Rs 6.512 million); Zaib Poly (Rs 3.556 million); Doaba Plastic (Rs 1.034 million); Punjab Poly (Rs 1.47 million).

Tulip Poly (Rs 0.882 million); Lahore Poly (Rs 5.796 million); Sameer Poly (Rs 4.875 million); Dae Duck Corporation (Rs 1.710 million); Taj Industry (Rs 1.726 million); Kakasian Package ( Rs 0.929 million); Sartaj Poly Sack (Rs 2.133 million); Riaz ud din Poly ( Rs 3.909 million); Jan Poly (Rs 1.301 million); Zia Poly (Rs 1.139 million); Industrial Polypack (Pvt) Limited (Rs 1.778 million); Nazim Polysack (Pvt) Limited (Rs 4.978 million).

New Age Plastics (Pvt) Limited (Rs 4.030 million); Polypack (Pvt) Limited (Rs 10.120 million); Shaikh Poly (Rs 0.948 million); Saeed Fabric (Rs 1.185 million); Diamond Poly (Rs 4.418 million); Amutl Rehman Industries (Rs 2.758 million).

Chaudhery Poly (Rs 1.422 million); Four Star Poly (Rs 0.948 million); Hafeez poly (Pvt) Limited (Rs 2.726 million); Kosar Poly Sahiwal (Rs 0.711 million); Madina Polytex-Rawat Rawalpindi (Rs 1.160 million).

Madina Poly (Rs 2.844 million); Nawaz Poly (Rs 0.948 million); Shama Poly (Rs 0.948 million); Sheikh Riaz & Brothers (Rs 5.512 million); Sheikh Riaz Poly (Rs 4.267 million); and Siminawa Sangalla Hill, Shahkot Lahore (Rs 2.94 million).

HYDERABAD: In Hyderabad J R S. Industries, Nooriabad (Rs 1.974 million); Shahzad Corporation Limited (Rs 0.611 million); Sindh P P Industries Limited (Rs 1.232 million); and Dewan Sugar Mills Polypropylene division, Thatha (Rs 2.726 million); were indulging in tax evasion.

PESHAWAR: As many as 14 units were minting money through tax evasion. These were Kashmir Polytex Limited (Rs 3.351 million); Sheraz Industries (Pvt) Limited (Rs 5.333 million); Adil Polypropylene (Rs 2.963 million); Abson Industries Limited (Rs 5.214 million).

Syntron Limited (Rs 0.135 million); Syntronics Limited (Rs 1.658 million); NOVA Synpac (Pvt) Limited (Rs 4.030 million); S S Polypropylene (Pvt) Limited (Rs 2.059 million).

Rakaposhi Polypropylene Bags Limited (Rs 1.185 million); Unkom Rubber Products (Pvt) Limited (Rs 1.067 million); Margala Packages & Allied Gadoon (Rs 1.541 million).

Nafees Poly (Rs 6.689 million); Al-Sadiq Industries (Pvt) Limited (Rs 1.541 million); and Shah Lala Poly (Rs 1.422 million).

QUETTA: Quetta-based polypropylene industrialists involved in tax evasion were Mian Nazir Sons Industries (Pvt) Limited (Rs 1.758 million); Fauji Polypropylene Products (Rs 3.014 million); Plastic Pack (Pvt) Limited (Rs 1.898 million); Farooq Sons Packages (Pvt) Limited (Rs 1.896 million).

Baig Industries (Pvt) Limited (Rs 3.081 million); Kohinoor Poly Products (Pvt) Limited (Rs 1.165 million); Imran Polypropylene (Pvt) Limited (Rs 2.370 million); Adil Industries (Pvt) Limited (Rs 2.665 million).

Dae Young Industries (Pvt) Limited (Rs 2.521 million); and Al-Karam Packages (Rs 1.422 million).

Copyright Business Recorder, 2004


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