Sources told Business Recorder here on Wednesday that the DGPCA has unearthed large-scale evasion of duties and taxes no the imported goods during 2011-12. DGPCA's detection of duty and tax evasion in Pakistan from July 2011 to June 2012 revealed that undervaluation and non- application of valuation rulings caused revenue loss of Rs 61.57 million. The misuse of exemption and SROs resulted in revenue loss of Rs 2075.67 million. The mis-declaration of description and tariff classification caused loss of Rs 482.03 million.
The non-payment of federal excise duty (FED) on import of cigarette/aerated water caused revenue loss of Rs 340.74 million and others misuse of customs rules and regulations resulted in revenue loss of Rs 6.10 million. The documented cigarette manufacturers etc caused revenue loss of Rs 340.74 million to the national exchequer during 2011-12.
Thus, the directorate has unearthed revenue loss to the tune of Rs 2966.11 million. The proper implementation of post audit procedures ensures that the audit tests and results are correctly recorded; audit results are fully evaluated; trader's rights are fully respected and anomalies and/or deficiencies in audit procedures are addressed, sources said.
In the past, DGPCA Karachi has unearthed several cases of non-implementation of valuation rulings at the Pakistan Customs Computerised System (PaCCS) and "One Customs", which resulted in clearance of imported goods at lower rate of customs duty, causing huge loss to the national exchequer. In this regard, the Federal Board of Revenue (FBR) had received reports from the directorate of PCA, Karachi to ensure implementation of the valuation rulings at all Model Customs Collectorates (MCCs). The directorate of PCA Karachi has detected cases where valuation rulings have not been applied for accurate assessment of duties and taxes at the import stage.