Internal Audit questions non-realization of Rs220.485 million by Group-IV Appraisement West

KARACHI: The Directorate of Internal Audit (Customs) has made an observation underlining non-realization of revenue to the tune of Rs220.485 million in respect of Group-IV of MCC Appraisement West.

The Directorate of Internal Audit has advised MCC Appraisement West to clarify or justify the position in this regard or the pointed out amount of government revenue may be recovered.

An official said that Directorate of Internal Audit has made an impression in the last couple of years detecting revenue leakage and non-realization of revenue of billions of rupees. The Directorate has no access to the data of import and export, if the Directorate is given complete access to all information and data, a large number of revenue leakage cases could be established and recovery could be affected.

Moreover, despite this extra-ordinary performance the Directorate staff has not been given any incentive or reward. The official said the authorities should consider a special incentive package for postings in WeBOC Project, Internal Audit, Post-clearance Audit, Prosecution and Valuation Department, so that the officers/officials deployed in these departments could be discouraged for opting towards corrupt practices.

In compliance with the audit programme issued by the Director of Internal Audit, the audit of Chapter 50 to 71 of MCC Appraisement West for the period 2013-14 was carried out. The officers and posted in Group-IV of MCC Appraisement West include Deputy Collector Ghulam Nabi Kamboh and Ali Ahmed Talpur.

According to a condition of the SRO 1125(I)/2011, on import by commercial importers of goods useable as industrial inputs, sales tax shall be charged at the rate of 2.0 percent along with 2.0 percent value addition tax at the import stage.

These importers include M/s AI-Mawadah Textile, M/s A.I Enterprise, M/s Ahsan Enterprise, M/s Al Harmain, M/s G M Export, M/s Hira Export, M/s Jacquard International, M/s Klassic Industries, M/s Pioneer Textile, M/s Anwar & Sons, M/s Shan Associates, M/s Salva Garments, M/s Yasin Silk, M/s Samad Enterprises, M/s B.A Impex, M/s Babar Knitwear, M/s King Exports, M/s Warasat Enterprises and M/s W.J.K Enterprises.

Contrary to this, during scrutiny of soft data of import of Group-IV, MCC Appraisement West for 2013-14, it was observed that various importers imported industrial inputs availing the benefit of SRO 1125(I)/2011 and paid sales tax at 2.0 percent and 3.0 percent, but value addition tax of 2.0 percent was not paid.

The Audit team comprised of Deputy Director Sabir Jamal, Audit Officer Laeeq Hasan, Superintendents Saifullah Khan and Rizwan Ali Khan, Deputy Superintendent Tariq Kamal.

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