Islamabad, Dec 30: A major cement manufacturer is allegedly implicated in a Rs. 2.4 billion tax fraud involving the misuse of four export tax exemption schemes. The Post Clearance Audit (PCA) South reported that the company imported significant amounts of clinker and packing materials but failed to meet the export obligations required under these regimes.
During a physical inspection of the factory on December 18, 2024, it was found that only 62,000 MT of clinker was accounted for from a total of 463,334 MT, leaving 395,000 MT, valued at Rs. 3.3 billion, untraceable. The manufacturer’s claims of stockpiles at Taftan and Gwadar dry ports were proven false.
The PCA audit uncovered tax and duty evasion totaling Rs. 369 million under the Manufacturing Bond, Rs. 222 million through DTRE, Rs. 91 million under Temporary Import, and Rs. 1 billion by exploiting the EFS scheme, among other irregularities.
An FIR has been filed under Section 32A of the Customs Act to investigate other collaborators in the fraud, which reportedly began in 2020. PCA officials also noted widespread abuse of export facilitation regimes by other businesses.
