KARACHI Directorate of Intelligence and Investigation (I&I) – Customs, Karachi, has detected a massive tax evasion amounting to Rs.642.83 million. The evasion was uncovered during the scrutiny of a single Goods Declaration (GD) in September 2024. The team, led by Director Mian Masood Ahmed, Additional Director Afzaal Ahmad Wattoo, and Deputy Director Saif Ullah, operated under the guidance of Director General Ali Raza Hanjra from I&I-Customs, Islamabad.
The evasion was attributed to M/s. Enertech Water (Pvt) Ltd, Karachi, which falsely claimed a sales tax exemption under Serial No. 22, Table-3, Sixth Schedule of the Sales Tax Act, 1990, for the import of “CW GRP pipe and fittings.” This exemption is only applicable to projects with an Implementation Agreement with the Federal Government, which the importer lacked. Further investigation revealed that the claimed exemption of customs duty under Serial No. 10, Part-I of the Fifth Schedule to the Customs Act, 1969, was also inadmissible.
The Directorate promptly communicated these findings to the Chief Collector of Customs Appraisement (South) to ensure the recovery of the evaded revenue. Consequently, Rs.462.83 million was recovered, marking the highest single GD recovery in the Directorate’s history. Additionally, another Rs.77.97 million was recovered from a separate case involving the import of Solis brand grid-tied solar inverters with accessories, where the relevant Valuation Ruling was not applied.
In total, the Directorate has recovered Rs.581.22 million in evaded duties and taxes this month, showcasing its unwavering commitment to closing loopholes in the clearance processes and ensuring legitimate revenue collection.