The Regional Tax Office (RTO), Karachi has detected number of tax evasion cases worth Rs 115.121 million during October 2008 to December 2008. Importers M/s Filters Pakistan (Pvt) Ltd, Karachi, M/s Paramount International (Pvt) Ltd, Karachi and M/s Orient Agencies, Karachi were involved in clearing cigarette filter cellulose acetate consignments without paying leviable sales tax and income tax.
The said goods were cleared through PaCCS system without paying sales tax on self-assessment basis. This item was being cleared in the garb of zero-rating, which was available to textile articles. However, cigarette filter acetate tow is exclusively used in the manufacture of cigarette filter rods and cannot be treated as textile articles for the purpose of exemption. Cases have been made against accused importers and have also been forwarded to Model Customs Collectorate (MCC), Karachi for adjudication and recovery.