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ISLAMABAD: Federal Board of Revenue (FBR) has handed over the case of alleged under-invoicing by a Lahore-based company to the Directorate General of Post Clearance Audit, Karachi for detailed investigation, well-informed sources told Business Recorder.

Another development in the case, sources said, is that the appraisers dealing with the cars' clearance section, who have processed Good Declarations (GDs), are being removed from their postings, the sources added.

The documents shared with FBR's senior officials also indicate that initially this vehicle was cleared at customs duty of $ 14,793.

According to sources, in May 2000, the first vehicle of same model, was assessed at customs duty of $ 14,793 at West Collectorate, Karachi, whereas another vehicle of the same model came in November 2000 at Port Qasim, which was assessed at $ 11,632. Total 230 vehicles were cleared at Port Qasim.

"I guess the officials who assessed price of vehicle at $ 11,632, either did not see the GD of $ 14,793 or there was another reason," the sources continued.

The remaining 655 vehicles came at MCC East, which also cleared the vehicles at customs duty of $ 11,632 each.

The sources further stated that Manufacture Suggested Retail Price (MSRP) presented at Port Qasim is suspicious. The company has also paid Federal Excise Duty recently.

"If the vehicles are cleared on the basis of evidence of, MCC West, i.e., $ 14,793 for each vehicle, the financial loss to the party would have been around Rs 470 million. However, if assessment is made on the price in Australia excluding 20 per VAT, the difference is around Rs 940 million," the sources said, adding that even after discount, the price of CBU vehicle is not less than $ 15,000. "The audit will take a month or so as it is intrusive. We have to do our job without any influence," said another senior official.

Copyright Business Recorder, 2021

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