KARACHI: R&D of MCC Appraisement East has created recovery to the tune of millions of rupees against several pharmaceutical companies. The sum was evaded on import of excipient/chemicals by claiming inadmissible exemption of 8th Schedule of Sales Tax Act, 1990.
The pharmaceutical companies include UNISA Pharmaceutical, Venus Pharma, Vetrox Pharmaceutical, w. Woodward Pakistan, WIMITS Pharmaceutical, Zafa Pharmaceutical, Abbot Laboratories, Anthro API-Gen, Apsis Pharmaceutical, Ashrafsons Pharmaceutical, Asian continental and Atco Laboraties.
MCC Appraisement East detected massive evasion of taxes on import of excipient/chemicals by claiming inadmissible exemption of 8th Schedule of Sales Tax Act, 1990.
A number of importers of pharmaceutical industry are claiming undue Sales Tax benefit on import of excipients/chemicals. Mis-declarations resulting in sales tax evasion to the tune of approximately Rs218 million and income tax evasion of Rs4.5 million is detected.
On the instructions of Collector Appraisement East Amir Thaim, Additional Collector R&D Imran Sajjad Bukhari formed a team Principal Appraiser Aashiq Memon, Appraising Officer Ghani Soomro and other officers. Recoveries have been created and sent to respective Customs Group to affect recovery. In case, recovery is not made, action including Contravention and FIR may be taken.
Sources said several multi-national companies are said to be involved in money laundering through over-invoicing. Similarly, local automobile companies are also involved in over-invoicing of imported CKD kits.
An official said economy is passing through a critical phase, with severe shortage of foreign exchange and rising current account deficit. Authorities should look into the dollar drain and money laundering through over-invoicing.
Similarly, shipping lines and container terminal operators are causing severe dollar drain. There is no check on shipping lines and terminal operators. First, they slap container detention and demurrage on importers, which is USD, and then these dollars are sent abroad.