Large financial loss in tyre tax frauds
May 21, 2016
Reports reaching us confirm a large financial fraud has occurred by not charging the relevant tax when importing tyres to the country.
It is the customs officer’s duty to impose the relevant taxes for the imported goods based on the invoice value. Due to the fraud committed by the customs officer’s large revenues to the country has been lost. News reaching us confirms that a tyre mafia is behind this tax fraud.
It is learnt that the government has lost a sum of Rs. 1.2 billion from the year 2007 to 2014.
When imposing tax for imported tyres the weight and the size of the tyres are considered. Therefore for the 2011.10 size a value of 25% or Rs. 175 is charged per kilogram, for 4011.20.10 size either 15% or Rs. 70 per kilogram and for size 4011.20.90 size 15% or Rs. 80 per kilogram is charged as tax.
SES tax, ports and aviation development tax and another tax imposed for the total amount are charged when imposing taxes for imported tyres under export development act.
Meantime another group of tyre importers has complained the relevant authorities that they have lost reasonable opportunities in the local tyre market due to the mafia conducted by a group of importers within the country.
When imposing tax for imported tyres the weight and the size of the tyres are considered. Therefore for the 2011.10 size a value of 25% or Rs. 175 is charged per kilogram, for 4011.20.10 size either 15% or Rs. 70 per kilogram and for size 4011.20.90 size 15% or Rs. 80 per kilogram is charged as tax.
SES tax, ports and aviation development tax and another tax imposed for the total amount are charged when imposing taxes for imported tyres under export development act.
Meantime another group of tyre importers has complained the relevant authorities that they have lost reasonable opportunities in the local tyre market due to the mafia conducted by a group of importers within the country.
