Karachi: The Customs Intelligence and Investigation (I&I) Karachi has revealed that some industrial importers of plastic daana (PCT 39.01 & 39.02) are misusing the tax benefits granted to them and selling their imported goods on commercial basis.
According to the I&I Karachi, the industrial importers of plastic daana are eligible for a cumulative benefit of 4.5% of taxes over the commercial importers. They are exempted from paying 3% Additional Sales Tax (AST) under the 12th Schedule of the Sales Tax Act 1990, and they pay only 2% Income Tax (IT) instead of 3.5% paid by the commercial importers.
However, the I&I Karachi has received credible information that some unscrupulous industrial importers are involved in the commercial sale of plastic daana, which is a violation of the tax laws and a loss to the national exchequer.
The I&I Karachi, led by Director Engineer Habib Ahmed, is investigating the matter and has advised all field formations to ensure that the import of plastic daana by the industrial importers is in accordance with their manufacturing capacity.
The annual demand of imported plastic daana in the country is more than 1.2 million tons, valuing Rs.350 billion. Therefore, even a small fraction of its commercial sale by the industrial importers can result in a huge revenue loss for the government.