The Federal Board of Revenue (FBR) has unearthed serious discrepancies to the tune of millions of rupees during special audit of several sectors, including plastic, textile, oil, re-rollers/re-melters, users of duties and taxes remission for export (DTRE) scheme, bulk oil clearance at import stage and special audit of transit vis-à-vis imports of yarn/fabric consignments. According to a report of the FBR on special audit of different sectors (audit period 2017-18), the audit for the said period was completed in 2018-19.
Directorate of General Internal Audit (Customs), Lahore, launched audit of bulk oil clearance. The Directorate completed the audits and conveyed its observations involving an amount of Rs 36.805 million to the Model Customs Collectorate Multan by issuing audit report. The Directorate conducted audit of DTRE users of plastic and textile in all field formations. The audit pointed out that Rs 10.613 million, Rs 90.256 million and Rs 95.918 million stand recoverable against various DTRE users of Model Customs Collectorate (Appraisement), Lahore, Faisalabad and Multan respectively. But despite repeated reminders, no recovery of the amount has so far been reported by the Collectorates.
In pursuance of Director General's directions, this Directorate launched audit of re-rollers, re-melters and furnace. The Directorate of Internal Audit (Customs), Lahore, has completed the audits and conveyed its observations involving an amount of Rs 34.036 million to the Model Customs Collectorate (Appraisement), Lahore, by issuing audit report.
Regional Directorate of Internal Audit (Customs), Islamabad, carried out the special assignments including special study on DTRE regime. The special study of DTRE Cell included observations pertaining to non-disposal of wastage, inadmissible concession of SRO 1125(I)/2011 and non-realisation of revenue on unconsumed stock under DTRE approval involving duty and taxes of Rs 30.83 million.
Special audit of transits vis-a-vis imports of yarn and fabric consignments:- Special audit exercise of abnormal import of Fabric under Afghan Transit Trade Exercise was completed wherein 172 cases were found related to discrepancy of weight between port of entry and port of exit.
Special audit exercise on imports of "bleached kraft paper (72 GSM and 70 GSM) and Clay Coated Board under Serial Number 106/49/19 of SRO 565(I)/2006:- Special audit exercise, on imports of bleached kraft paper (72 GSM and 70 GSM) and clay coated board under serial number 106/49/19 of SRO 565(I)/2006, was completed and no activity was observed therein.
Audit-cum-Study on warehouses of Frontier Corps (KP):- Audit-cum-study of three warehouses of Frontier Corps (KP) was completed which resulted in non-realisation of revenue of Rs 50.7 million on account of non-disposal of seized and confiscated goods. The amount of Rs 126,520,125 was realised as a result of audit observation.
Special audit of imports under SRO 678(I)/2004 dated 07.08.2004:- Special Audit of Imports under SRO 678(I)/2004 dated 07.08.2004 was completed that showed a loss of government revenue of Rs 304.57 million due to non-re-export of imported machinery and equipment under condition-VII of the SRO ibid.
Exclusive audit of consignments of aluminum composite panel, baby wipes, energy drinks and counting tasbeeh/ tally counters:- Exclusive audit of consignments of aluminum composite panel, baby wipes, energy drinks and counting tasbeeh/tally counters was completed that showed loss of the government revenue of Rs 21.16 million due to misclassification.