Customs intelligence flag illicit commercial trade in imported plastic DAANA

ISLAMABAD: Customs Intelligence has raised concerns over the commercial sale of imported plastic DAANA by a select group of unscrupulous industrial importers.

A document reveals that the Directorate of Customs Intelligence and Investigation Karachi has alerted the headquarters in Islamabad regarding the unauthorized commercial transactions involving plastic DAANA.

According to credible sources, certain industrial importers are taking advantage of a cumulative exemption of 4.5% in Additional Sales Tax (AST) and Income Tax (IT) on the import of plastic DAANA. They are reportedly engaging in its sale for commercial purposes.

These industrial importers of plastic DAANA (PCT 39.01 & 19.02) enjoy a combined tax benefit of 4.5% over commercial importers. Additionally, they are entitled to a 3% AST exemption under the 12th Schedule of the Sales Tax Act 1990, and pay only 2% IT instead of the 3.3% paid by commercial importers.

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It is worth noting that the annual demand for imported plastic DAANA (PCT 39.01 & 19.02) in the country exceeds 1.2 million tons, valued at Rs. 350 billion.

Even a slight volume of commercial sale by these industrial importers could result in significant losses to the National Exchequer.

As the matter undergoes further investigation, there is a possibility of circulating this information to all field formations. This step aims to ensure that the import of plastic DAANA (PCT 39.01 & 39.02) granted to industrial importers after a 4.5% exemption in AST & IT aligns with their manufacturing capacity.