Export Facilitation Scheme (EFS) Misuse: Customs Detects Rs40.16 Million Tax Fraud
The Collectorate of Customs Exports at Port Muhammad Bin Qasim has exposed a major tax evasion case under the Export Facilitation Scheme (EFS). An effort to launder Rs40.16 million was made by M/s Pro Textile, an Export Oriented Unit in Karachi. This was detected through an audit.
Collector Saadia Sheeraz did exactly what she was instructed and made a minute audit of the stock and working of M/s Pro Textile. The investigation, which had started earlier with Additional Collector EFS Ghulam Hyder Mahesar and Deputy Collector EFS Muhammad Omer Latif, kept on spewing many irregularities.
The company was licensed under its EOU license to import duty-free raw materials and machinery only for export purposes. But the audit found a liability in the form of 45.5 metric tons of nylon mesh net fabric worth Rs82.13 million that could not be traced in their books and were not used in export production.
Customs successfully collected Rs40.16 million in duties and taxes from the company. The officials confirmed that M/s Pro Textile had been violating the concessionary EOU regime, thereby suffering a heavy loss for the government.
A contravention case has been registered against the company, and the judicial procedure is underway. In this case, an instance of Customs vividly projecting that they must put a stop to the misuse of government schemes and ensure adherence to the rules of regulations.
