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Failure to deposit value addition tax: recovery proceedings launched against 600 importers

The Federal Board of Revenue has launched recovery proceedings against over 600 importers, who failed to deposit 3 percent minimum value addition tax on the imported goods during 2013.

Sources told Business Recorder here on Wednesday that the Project Director Computerised Risk-Based Evaluation of Sales Tax (Crest) system has issued discrepancy lists of importers containing profiles of units to the concerned Collectors of Customs Model Customs Collectorates (MCCs) for recovery of unpaid amount of tax at import stage. The Crest has detected this major discrepancy during clearance of imported consignments from ports and initiated recovery against the defaulting importers on national level.

Details of the lists revealed that the MCC Appraisement Customs House Karachi failed to collect 3 percent minimum value addition tax from over 273 units during January-April 2013. The list further revealed details of importers with National Tax Number (NTN), import value of goods, value addition tax payable and other relevant data. In another case, 43 units cleared their consignments through MCC Appraisement Customs House Lahore where minimum value addition tax has not been paid at the import stage. Similarly, 40 units have not paid minimum value addition tax during clearance of their consignments from MCC Quetta. Over 70 units cleared their consignments from MCC Appraisement Hyderabad without payment of minimum value addition tax at the import stage. Four importers cleared their consignments from MCC (Appraisement) Peshawar without payment minimum value addition tax at the import stage. Similar instructions have also been issued to remaining MCCs for necessary action against the defaulted importers.

According to the Project Director Crest communication to all Collectors of Customs, during analysis of import data from January 2013 to April 2013 by the Crest team, it has been observed that certain importers have not paid minimum value addition tax at the rate of three percent of the value of goods as required under rule 58B of chapter X of the Sales Tax Special procedure Rules, 2007 issued vide SRO.480(I)/2007 dated 9.6.2007 as amended, subsequently.

The details of such importers have been given to the Collectors of Customs. It is, therefore, requested to initiate recovery in all such cases. In case of any issue, the Crest team can be contacted by the Collector of Customs, instructions added.

Copyright Business Recorder, 2013