KARACHI: The Export Collectorate at Port Muhammad Bin Qasim (PMBQ) has exposed a major tax evasion of Rs 825 million against a trading company operating in the Export Processing Zone Authority (EPZA).

According to the details, the accused company is alleged to have engaged in systematic smuggling and tax evasion through abuse of the EPZ exemption regime. The fraud was discovered during a routine audit for the Financial Year 2023-24, prompted by suspicious activity patterns.

In a significant breakthrough, authorities intercepted two suspicious consignments. The first, declared as used LCD laptops and computer parts, was found to contain unauthorized used tablets and new keyboards worth Rs 10.6 million, evading duties of Rs 3.6 million.

The second consignment proved even more alarming. Declared as “Raw Cotton,” physical examination revealed 14,000 kg of concealed Cellulose Acetate Tow, a high-duty item attracting Federal Excise Duty of Rs 44,000 per kg. This discovery alone accounted for Rs. 821 million in evaded duties on goods valued at Rs 22 million.

“This is a serious case of misuse of the EPZ exemption regime,” stated Collector Sadia Sheeraz, who led the investigation.

“The company not only violated numerous provisions of the Customs Act, 1969, and EPZA Rules but also attempted to smuggle restricted items into Pakistan’s tariff area.”

The Export Collectorate has filed a First Information Report (FIR) and formed two special teams to arrest the accused and their accomplices. Additional Deputy Collector Zehra Naqvi and Deputy Collector Amin Haider Shah were instrumental in detecting the fraud.

The case has prompted calls for stricter oversight of EPZA operations, with authorities considering the cancellation of Sardar Enterprises’ licence due to repeated violations. The clearing agent involved, Mariaum Logistics (Pvt) Ltd, is also under investigation for their role in filing false declarations.

Copyright Business Recorder, 2025