The Post Clearance Audit (PCA) South has unearthed a significant tax fraud involving Rs. 2.4 billion by a prominent cement manufacturer, allegedly exploiting four export tax exemption schemes, BR reported.
The schemes misused include the Manufacturing Bond, Duty and Tax Remission for Exports (DTRE), Temporary Import under SRO 492, and the Export Facilitation Scheme (EFS), PCA documents reveal.
The manufacturer reportedly imported substantial quantities of clinker and packing materials under the pretense of export but failed to meet the export requirements stipulated in these schemes. The investigation, led by Director PCA South Sheeraz Ahmed and initiated on the directives of DG PCA Dr. Zulfikar Ali Chaudhry, uncovered severe discrepancies during preliminary data scrutiny.
A physical inspection of the factory premises on December 18, 2024, confirmed that out of a total imported quantity of 463,334 metric tons (MT) of clinker, only 62,000 MT was accounted for at the factory. A massive quantity of 395,000 MT, valued at Rs. 3.3 billion, was found missing, allegedly pilfered and sold in the local market.
The manufacturer’s claim that 15,000 MT of clinker was stockpiled at Taftan and Gwadar dry ports was found to be unsubstantiated, with no evidence backing the assertion.Â
Furthermore, the importer failed to fulfill export obligations under the schemes, with utilization periods long expired in cases involving the Manufacturing Bond, DTRE, and SRO 492.
According to PCA findings, the evasion breakdown includes Rs. 369 million through the Manufacturing Bond, Rs. 222 million via DTRE, Rs. 91 million under Temporary Import (SRO 492), and Rs. 1 billion through EFS misuse. Additionally, a surcharge of Rs. 676 million was calculated on the illegal removal and sale of exempt goods.
An FIR has been lodged under Section 32A of the Customs Act, initiating a detailed investigation to identify all individuals and entities involved in the fraudulent activity, which reportedly dates back to 2020.
