Imports of black tea in Azad Kashmir have resulted in billions of losses to the treasury, affecting the competitive environment. Photo: File
Karachi: The Directorate of Customs Intelligence Karachi has initiated a large-scale crackdown on misuse of tax exemptions on the import of black tea.
Although a 6% income tax is imposed on the import level of black tea, an exemption of 6% income tax is obtained for the use of tea imports in Azad Kashmir region.
Authorities revealed that they have received authenticated information through their secret network that dishonest importers are misusing this facility in Azad Kashmir by importing black tea in the name of industrial units and obtaining a 6% income tax exemption.
After obtaining the tax exemption facility, the importers instead of taking the mentioned tea to Azad Kashmir, sell it in established markets in other parts of Pakistan, causing the national treasury to incur losses of millions of rupees in revenue, while other legitimate tea importers are facing difficulties in competing in the market in terms of price.
Officials told Express that a team formed by Customs Intelligence Karachi in this regard continued monitoring a container of 14 tons of black tea cleared through Port Qasim Collectorate.
The container of tea cleared at concessional tariff by the Customs Department was instead offloaded in Basmati Godown, Hawksbay Road, Maripur, Karachi, rather than going towards Azad Kashmir, upon which the team immediately conducted a crackdown, conducting searches of warehouses in the mentioned areas, resulting in the seizure of an additional 530 tons of black tea for sale.