A prominent cement manufacturer has been allegedly involved in a Rs. 2.4 billion tax fraud through misuse of four export tax exemption regimes.
According to Post Clearance Audit (PCA) South, the manufacturer imported large quantities of clinker and packing materials but failed to fulfill the export requirements mandated by these schemes.
A physical inspection of the factory premises on December 18, 2024, revealed that out of 463,334 MT of clinker, only 62,000 MT was accounted for while 395,000 MT worth Rs. 3.3 billion was missing.
Also, claims by the importer about stockpiles at Taftan and Gwadar dry ports were debunked as unsubstantiated.
The PCA audit found 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 EFS misuse, amongst other things.
An FIR has been lodged under Section 32A of the Customs Act to identify other accomplices in the scam which first began in 2020.
PCA officials also highlighted broader misuse of export facilitation regimes by other traders.