KARACHI: Another tax fraud, amounting to around Rs 358 million has been detected in the Export Facilitation Scheme (EFS).

This time, the Post Clearance Audit (PCA), South has caught a steel manufacturing unit in Karachi, which reportedly misused EFS and committed tax fraud of around Rs 358 million.

Investigations reveal the scam revolved around the illegal sale of Rs 2 billion worth of imported scrap that was brought in under the EFS.

As per details, the accused steel manufacturing unit imported 2,961 metric tons of exempt scrap material and then secretly removed and sold it in the market in gross violation of regulations governing the duty-free EFS scheme. When confronted by auditors regarding glaring discrepancies in inventory, imports, and factory records, the proprietor failed to provide any satisfactory justification. This pointed clearly to deliberate fraud and tax evasion.

An FIR has now been registered by the PCA South against the owner and other accused individuals connected with this steel manufacturing unit. Stern action will be taken after further investigations. DG PCA Chaudhary Zulfiqar Ali and Director PCA South, Sheeraz Ahmed spearheaded this audit operation.

Earlier, this week, PCA North discovered a textile unit in KPK, which reportedly misused EFS and provided around Rs 1.4 billion financial shocks to the kitty in just six months.

Copyright Business Recorder, 2024

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