Islamabad 6 August: The Directorate General of Post Clearance Audit (PCA) has unearthed a major under-invoicing racket involving the import of luxury vehicles, exposing billions of rupees in lost revenue to the national exchequer.
In a detailed audit of 1,335 Goods Declarations, PCA officials found that high-end vehicles were systematically undervalued at the time of import. The declared value of these imports was recorded at just Rs. 670 million, whereas the actual assessable value stood at a staggering Rs. 7.25 billion.
In one of the most striking cases, a 2023 Toyota Land Cruiser imported from Japan was declared at a mere Rs. 17,635 — a fraction of its market value. Authorities say this case is indicative of a broader pattern of deliberate misdeclaration intended to evade customs duties and taxes.
The audit, part of a larger effort to tighten post-clearance scrutiny, points to widespread collusion between importers, customs agents, and possibly complicit officials. Investigations are now underway to identify the entities involved and initiate recovery proceedings.
According to sources, the Directorate is preparing show-cause notices and may launch criminal proceedings against companies and clearing agents involved in the scheme.
The discovery has sparked calls for tighter regulatory oversight, with officials stressing the need for automated valuation systems and enhanced inter-agency data sharing to prevent such practices in the future.
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The incident also raises concerns about revenue leakages at a time when Pakistan is grappling with a fiscal deficit and pressure to boost tax collection.
The Federal Board of Revenue (FBR) is expected to take up the matter in its upcoming review of customs procedures. Meanwhile, the PCA has recommended urgent reforms in vehicle import documentation and valuation protocols.
