KARACHI: Chief Collector Appraisement South Ashad Jawwad has formed a committee to investigate lapse in recovery of correct amount of withholding tax.

As reported by MCC appraisement East Karachi, during Post Release Verification (PRV) exercise, it transpired that some commercial importers were involved in evasion of income tax by filing GDs with concessional rate of 2.0% instead of 3.5% as enhanced through amendment in 12th Schedule of Income Tax Ordinance, 2001.

On quantum of revenue involved and the fact that ensuring correct implementation of budgetary changes at import stage was the responsible of customs processing officers.

Therefore, a committee comprising of highly reputed and competent officers has been formed to investigate the lapse and identify responsible persons. Collector MCC Port Qasim Jamil Nasir will head the Committee and comprised of Additional Collector MCC Appraisement East Syed Imran Sajjad and Additional Collector MCC Appraisement West Yasin Murtaza.

The committee will also identify, collectorate-wise, the total number of such GDs where this lapse has occurred, the recoverable amount and the name and designation of officers who completed the assessment with lower income tax rate.

The committee shall also seek input from stakeholders outside of the department to ascertain involvement of Customs staff.

It was learned that two Assistant Collectors and Assessment Officers have been identified for their involvement in the case. Further proceedings are underway.