Actions against false declaration and possible misuse of tax facility have been tightened
ISLAMABAD: The Federal Board of Revenue (FBR) and Pakistan Customs have intensified action against alleged misuse of tax facility and misrepresentation related to imported cloth.
According to the authorities, the inspection process of imported cloths under the Export Facilitation Scheme has been tightened to eliminate attempts to evade taxes through false declaration.
The spokesperson of Pakistan Customs says that All Pakistan Textile Mills Association (APTAMA) has also appreciated this action. According to the association, providing wrong information about imported fabrics not only harms the national exchequer but also creates an unequal competitive situation for the local textile industry.
According to Customs officials, greige fabric i.e. raw or unprocessed cloth has already been excluded from the Export Facilitation Scheme, however wrong information about the nature of the cloth has been identified in some import consignments.
After this situation, the concerned import consignment is being checked in detail and its samples are also being sent for laboratory tests as required to ascertain the original nature of the cloth.
Pakistan Customs has also taken steps to make physical inspection and laboratory testing of imported cloth more effective so that any type of misdeclaration can be identified in time.
Another method also came to light during the recent investigation, where some importers allegedly tried to make the fabric appear as finished fabric using only food coloring instead of regular dyeing.
According to officials, such misrepresentation could be aimed at evading taxes and obtaining import facilities, which could affect government revenues as well as harm local industry.
The spokesperson of Pakistan Customs clarified that monitoring and control will be tightened to prevent mis-declaration of imported goods and misuse of Export Facilitation Scheme.