PCA Karachi streamlines system; secures government revenue | CustomNews.pk

PCA Karachi streamlines system; secures government revenue

KARACHI: The Directorate of Post Clearance Audit Karachi has detected evasion of additional customs duty of Rs25.88 million by the exploration and production (E&P) companies. This case is an addition to a long list of cases, which Director Gul Rehman led Directorate of Post Clearance Audit Karachi made in past couple of years. During the audit to verify the payment of additional customs duty levied, it was found that M/s Presson Descon, Lahore, M/s Byco Petroleum, Karachi and M/s Oil & Gas Development Company, Islamabad imported goods under SRO 678(I)/2004 and got these cleared without paying the additional customs duty by claiming inadmissible exemption under SRO 1178(I)/2015. Since the claimed exemption pertains to plant & machinery used in the manufacture or production of goods classifiable under chapter 84 and 85, the above mentioned importers are not engaged in such activity, therefore audit observations were issued. In response to these audit observations, M/s Oil & Gas Development Company (OGDC) agreed to pay the short-levied duty of Rs1.74 million. Gul Rehman has led the directorate of post clearance audit (PCA) quiet efficiently and the department delivered exemplary performance. Not only that, evasion, under-invoicing, misuse of concessionary SROs etc. were detected and government’s legitimate revenue was recovered; these very doors of revenue leakage were plugged for good. PCA Karachi realized revenue of hundreds of millions of rupees, which the plant and machinery importers, LED lights importers, Cheese importers and various other traders were evading through misuse of concessionary SROs. Similarly, a rigorous scrutiny was conducted against under-invoicing. PCA Karachi not only realized evaded revenue, but the system was streamlined and things were put in order securing government revenue going forward.
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