As per a recent media report, the Federal Board of Revenue (FBR) has launched an investigation against a new entrant in the automotive industry of Pakistan. The automaker allegedly under-invoiced the customs value of one of its highly-desirable and most expensive vehicles in the lineup. The report states that the automaker is MG, and the vehicle is HS SUV.
The report adds that FBR had managed to procure the “document,” which contains the details about the import of the vehicle. The document is reportedly under the observation of the authorities. However, it has been revealed that the company had, imported 400 Completely Builtup Units (CBUs) from China, most of which were MG HS SUVs, when FBR took notice of the issue.
The report further claims that the automaker had declared the customs value of the vehicle as $11,632, which is “massively understated” since the vehicle is being sold in other countries for over $27,000. The said “document,” which contains the details of the alleged scam, has also been shared with the relevant Ministries for a detailed investigation.
The under-invoicing scam has potentially caused billions of rupees worth of losses to the national exchequer. Having imported over 400 CBU units, the automaker has allegedly evaded over Rs 1.1 billion worth of duty and taxes to date.
The news about the said development came yesterday and understandably became an instant matter of worry for the automaker. Javed Afridi – the key-stake holder of MG Pakistan – has been fairly active on social media as of late. On the same day, Afridi took to social media to make the following statement:
For decades, Pakistani automobile consumers have been exploited by cartels that cornered them with low quality, boring models at exorbitant prices. Plus, buyers had to pay billions of rupees to get delivery of the very vehicles the price of which they had already paid. As new entrants bring in exciting new models at far lower prices, instead of competition, we expect maligning campaigns and baseless rumors. While we know that competition is an unfamiliar phenomenon in Pakistan’s automobile industry, we invite everyone to join in a fair competition to serve Pakistani consumers with a bigger and better variety of vehicles at lower prices.
The reports of the scam have sparked the interest of numerous analysts and media outlets, as they all contemplate in wonder as to what might be the future of MG after this development going forward.
Via: Business Recorder