Cement Manufacturer Allegedly Involved in Rs. 2.4 Billion Tax Fraud
A prominent cement manufacturer is under investigation for allegedly committing a Rs. 2.4 billion tax fraud by exploiting four export tax exemption regimes. The Post Clearance Audit (PCA) South has accused the manufacturer of importing large quantities of clinker and packing materials but failing to meet the export obligations outlined in the relevant schemes.
During a physical inspection of the factory on December 18, 2024, it was revealed that out of 463,334 MT of clinker, only 62,000 MT was properly accounted for, while the remaining 395,000 MT, worth Rs. 3.3 billion, was found to be missing.
Read More: PM Initiates Inquiry into Tax Fraud Scandals
Additionally, claims made by the importer about stockpiles at Taftan and Gwadar dry ports were proven to be unsubstantiated.
The PCA audit uncovered significant duty and tax evasions, amounting to:
- Rs. 369 million under the Manufacturing Bond
- Rs. 222 million via DTRE
- Rs. 91 million under Temporary Import
- Rs. 1 billion through misuse of the EFS
An FIR has been lodged under Section 32A of the Customs Act, aimed at identifying other individuals involved in the scam, which is believed to have started in 2020.
PCA officials also raised concerns about the widespread misuse of export facilitation regimes by other traders, highlighting a broader issue within the industry.
