ISLAMABAD: The mobile squads of the Regional Tax Office (RTO) Peshawar have seized a huge quantity of goods including steel, ghee, cloth and shoes supplied from the manufacturing units of erstwhile tribal areas to tariff areas of Pakistan without payment of sales tax.

Details revealed that Chief Commissioner Inland Revenue, Regional Tax Office, Peshawar, Aqeel Ahmad Siddiqui has directed the mobile squads to pace up operations against sales tax evaders. Under the drive launched near erstwhile tribal areas, the check posts are also being established at different points in Peshawar and adjacent districts under section 40D of the Sales Tax Act, 1990.

In order to undertake foolproof surveillance of exit points from non-taxable to taxable territories, check posts under Section 40D of the STA, 1990 have been established and functionalised to ensure that due tax is paid on goods supplied into taxable territories.

The mobile squads successfully seized goods and vehicles carrying these goods. The seized goods included 88,000 kg of steel valuing Rs 12,591,850, 55,399 kg of ghee valuing Rs 21,397,604, 13000-meter cloth valuing Rs 112,500, and 55 cartons of shoes valuing Rs 500,940. The goods were being supplied from the manufacturing undertakings established in the erstwhile tribal areas and sales tax liability was not paid off. The total revenue involved is Rs 5,702,154. The amount included sales tax and penalty on the goods amounting to Rs 2,021,920 on steel, Rs 3,580,234 on ghee and Rs 50,000 on shoes and cloth each.

Furthermore, 24 vehicles were seized in the process, of which 19 were released after payment of due tax and penalty. Chief Commissioner Aqeel Ahmad Siddiqui warned the manufacturing units located in the newly merged areas to collect sales tax and pay the same thereof according to the law, otherwise, strict action will be taken against the evaders.

Copyright Business Recorder, 2023

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