KARACHI: A deliberate attempt to evade duty/taxes worth of around Rs 300 million by Pakistan Mobile Company Ltd (Mobilink) has been detected by the Federal Board of Revenue (FBR), Daily Times has learnt.
“Mobilink has imported ‘Lead Acid VRLA Batteries for Telephone Exchanges’ and tried to evade duties/taxes by misdeclaring these multi-purpose batteries under incorrect Pakistan Custom Tariff (PCT) heading,” said sources.
They informed that during the scrutiny of import data of ‘Lead Acid VRLA Batteries for Telephone Exchanges’ falling under PCT heading 8507.2010, chargeable to Custom Duty (CD) at 10 %, it has been observed by the Customs Directorate of Post Clearance Audit (PCA) that certain mobile communication companies have imported multi purpose batteries, evidently not for use in telephone exchanges under this PCT heading, while such batteries are correctly classifiable under PCT heading 8507.2090 chargeable to customs duty at 20 %.
Thus, by misdeclaring these multi-purpose batteries under PCT heading 8507.2010, Mobilink has made a deliberate and willful attempt to evade duty/taxes, the PCA said.
In this regard, the FBR has served a contravention report on the importer, stating that Mobilink is required to pay Rs 300 million short paid duty/taxes within given period.
However, in case Mobilink is of the opinion that audit observation is not correct, the FBR requested the company to appear either personally or through authorised representative and/or provide self-explanatory written clarification along with supporting documents.
According to details, the Mobilink has imported ‘cellular infrastructure equipment for telecom sector consisting of VRLA Gel Battery (12V)’, Rechargeable Battery (12V) and SBS EON 190 (12V) by misdeclaring them in the PCT heading 8507.2010 (a specified heading for Lead Acid Batteries used in Telephone Exchanges) chargeable to customs duty at 10 % instead of declaring them under their correct PCT heading 8507.2090 chargeable at 20 %.
Sources said that despite having cleared similar goods under correct PCT headings in February 2015, Mobilink, with the active connivance of their clearing agents, Saspak Cargo (Pvt) Ltd and Eastern Freighters, has evaded/short paid duty of Rs 199.4 million, sales tax Rs 69.3 million, additional sales tax Rs 9.98 million and income tax Rs 14.6 million, making total amount to around Rs 300 million in its latest import transaction.
If the company did not appear or reply by the given date, it shall be deemed that the company has nothing to offer in its defense or rebuttal of this audit observation and case shall be dealt with as per law on the basis of facts available on record, the sources said.
“There were some other mobile operators found responsible for not declaring the imported goods under incorrect PCTs as well, however, the all other mobile companies have been paid the short paid taxes/duties in the required time to FBR,” sources concluded.