Pakistan Customs uncovered a significant ‘money laundering’ operationamounting to Rs3.5 billion in Sindh’s Hyderabad district, as reported byARY News on a Monday. The revelations from official documents indicate thatthe HSJI company in Hyderabad managed to evade taxes amounting to Rs70million. They imported 14,392 metric tons of raw steel bars but managed toavoid paying the required taxes by exploiting customs facilities.
The documentation further revealed that this particular company had beengranted permission to import raw materials for steel bars and was supposedto pay taxes after the transformation of these materials into finishedproducts.
However, it was observed that the Steel-Re-rolling Mills did not fulfilltheir tax obligations, accumulating a substantial sum of Rs700 million inunpaid taxes, despite selling the steel bars to a construction company.
Pakistan Customs authorities asserted that a total of Rs700 million intaxes had been evaded, contributing to the larger issue of Rs3.5 billion inmoney laundering, which included profits, tax evasion, and the originalvalue of the steel bars.
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In a separate incident, Customs intelligence had recently exposed a taxevasion scandal worth Rs140 million at Karachi Airport’s Air Freight Unit(AFU). This case involved under-invoicing and counterfeit documents,resulting in a significant loss in tax revenue.
A private company allegedly committed corruption by misrepresenting thevalue of their consignment through under-invoicing and fake documentationat Jinnah International Airport Karachi’s AFU.