Latest news with #DirectorateGeneralofCustomsPostClearanceAudit
India Today
3 days ago
- Automotive
- India Today
Pak customs scam: 1-crore-rupee Land Cruiser valued at just PKR 17,000
A 127-page audit report by Pakistan's Directorate General of Customs Post Clearance Audit (PCA) has exposed what is being described as the largest trade-based money laundering scam in the Islamic Republic's history, involving luxury vehicle imports. The scammers evaded billions in customs duty by undervaluing luxury cars, at times to ridiculous report revealed systemic under-invoicing in 'Pakistan's faceless Customs system', with a shocking case from 2023.A Toyota Land Cruiser valued at over PKR 10 million (approximately PKR 1 crore) was cleared through customs, which was disclosed to be just PKR 17,635, allegedly with the collusion of customs scam, involving 1,335 vehicles, has led to an estimated tax evasion of PKR 18.78 billion, in a country whose financial integrity and its compliance with international standards is shaky and always under scrutiny.99.8% OF ALL LAND CRUISERS IMPORTED TO PAK UNDER-INVOICED TO EVADE TAXES: AUDITFor starters, Pakistan lacks an automobile manufacturing sector, resulting in heavy reliance on imports to meet domestic market for luxury vehicles, particularly among the country's elite, is significant, with foreign-made cars like Toyota Land Cruisers and Mercedes-Benz models, which are a showcase of status and Pakistan, luxury cars like the Toyota Land Cruiser, Mercedes-Benz, BMW, Audi, and Range Rover are highly sought-after by the elite, with 76,635 used vehicles imported in 2017, constituting approximately 27% of the total passenger car market, as imports of new and used vehicles accounted for about 20% of the market compared to 80% for locally assembled kits in FY21, reported the Karachi-based reliance has created a lucrative environment for importers, but also vulnerabilities for PCA audit, conducted from December 2024 to March 2025, found that 99.8% of Land Cruisers imported during this period were under-invoiced, with declared values as low as PKR 17,635 against actual market values exceeding PKR 10 total declared import value of 1,335 vehicles was PKR 670 million, while their actual value was over PKR 7.25 billion. This resulted in a tax shortfall of PKR 18.78 audit found that a staggering 99.8% of all Land Cruisers brought into Pakistan were under-invoiced to dodge taxes and import duties, reported Karachi-based The Express PAK CAR IMPORTERS EXPLOITED DIGITAL LOOPHOLES TO EVADE TAXESImporters exploited Pakistan's faceless customs assessment system, a digital platform meant to streamline clearances but riddled with audit revealed that no importer provided evidence of legitimate overseas payments, which fuelled suspicions of illegal hawala and hundi networks. These systems are often linked to global money report also highlighted how importers misrepresented vehicle values in tax filings, and evaded income tax Land Cruiser alone, if taxed properly, should have generated PKR 4-4.5 million in scandal poses serious risks to Pakistan's already-shaky financial stability, especially as the country struggles to meet Financial Action Task Force (FATF) and International Monetary Fund (IMF) compliance standards. The audit report, forwarded to the Federal Board of Revenue (FBR), State Bank of Pakistan, and Financial Monitoring Unit (FMU), has triggered a comprehensive investigation.- Ends advertisement
Express Tribune
3 days ago
- Automotive
- Express Tribune
Tax scam in faceless Customs clearance system
The Directorate General of Customs Post Clearance Audit (PCA) has uncovered large-scale under-invoicing and money laundering in the clearance of luxury vehicles through the faceless system. A shocking 127-page audit report has revealed what is being described as the largest trade-based money laundering scandal in Pakistan's history involving the import of luxury vehicles. According to the report, importers systematically undervalued the vehicles to evade billions of rupees in taxes. One of the most startling cases in the report involved a 2023 model Toyota Land Cruiser, which had a market value of over Rs10 million, but was cleared through customs at an absurdly low declared value of only Rs17,635, allegedly with the collusion of customs officers. The audit covered the period from December 2024 to March 2025 and reviewed post-clearance data of 1,335 imported vehicles. It found significant discrepancies between the declared and assessed values of the vehicles, with differences exceeding Rs. 1 million per vehicle in many cases. Importers declared the total import value of these vehicles as Rs. 670 million, while the actual value was found to exceed Rs. 7.25 billion. Due to this manipulation, importers paid only Rs. 1.29 billion in duties and taxes, while evading an estimated Rs18.78 billion in customs duties and taxes. According to the PCA report, not a single importer was able to provide proof that the payments for these vehicles were made through legal channels from abroad. This raised strong suspicions that payments were made through illegal hawala and hundi networks. The report further revealed that 99.8 percent of all Land Cruiser vehicles imported during the audit period were cleared using under-invoicing to evade taxes and duties. It warned that such organised under-invoicing not only results in massive tax evasion but also poses serious threats to Pakistan's financial system. These revelations come at a critical time, as Pakistan continues efforts to meet the compliance standards of international financial institutions, particularly the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The audit report has been forwarded to the Federal Board of Revenue (FBR), State Bank of Pakistan, and the Financial Monitoring Unit (FMU) for joint investigation and legal action against the network involved in this financial fraud.
Express Tribune
4 days ago
- Automotive
- Express Tribune
SUV imported for Rs17,635, evading billions in taxes
The Directorate General of Customs Post Clearance Audit (PCA) has uncovered large-scale under-invoicing and money laundering in the clearance of luxury vehicles through the faceless system. A shocking 127-page audit report has revealed what is being described as the largest trade-based money laundering scandal in Pakistan's history involving the import of luxury vehicles. According to the report, importers systematically undervalued the vehicles to evade billions of rupees in taxes. One of the most startling cases in the report involved a 2023 model Toyota Land Cruiser, which had a market value of over Rs10 million, but was cleared through customs at an absurdly low declared value of only Rs17,635, allegedly with the collusion of customs officers. The audit covered the period from December 2024 to March 2025 and reviewed post-clearance data of 1,335 imported vehicles. It found significant discrepancies between the declared and assessed values of the vehicles, with differences exceeding Rs1 million per vehicle in many cases. Importers declared the total import value of these vehicles as Rs670 million, while the actual value was found to exceed Rs7.25 billion. Due to this manipulation, importers paid only Rs1.29 billion in duties and taxes, while evading an estimated Rs18.78 billion in customs duties and taxes. According to the PCA report, not a single importer was able to provide proof that the payments for these vehicles were made through legal channels from abroad. This raised strong suspicions that payments were made through illegal hawala and hundi networks. The report further revealed that 99.8 percent of all Land Cruiser vehicles imported during the audit period were cleared using under-invoicing to evade taxes and duties. It warned that such organized under-invoicing not only results in massive tax evasion but also poses serious threats to Pakistan's financial system. These revelations come at a critical time, as Pakistan continues efforts to meet the compliance standards of international financial institutions, particularly the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The audit report has been forwarded to the Federal Board of Revenue (FBR), State Bank of Pakistan, and the Financial Monitoring Unit (FMU) for joint investigation and legal action against the network involved in this financial fraud.
