A major tax evasion scandal has surfaced, revealing that more than 350 luxury vehicles imported over the past eight years under the names of foreign embassy staff were illegally sold in Pakistan, causing an estimated loss of Rs15 billion to the national exchequer.
According to a report submitted to the FBR chairman, various embassies imported duty- and tax-exempt vehicles under diplomatic privileges, meant strictly for official use by accredited foreign staff. However, instead of being used for diplomatic purposes, these vehicles were allegedly sold to influential individuals across the country. Despite the tax exemption granted to diplomats, the vehicles cannot be sold under normal circumstances, yet they were reportedly disposed of using fabricated excuses of diplomats leaving Pakistan, supported by three-month temporary permissions and fake excise letters.
The investigative report states that over 350 such luxury vehicles, valued at more than Rs15 billion, were brought into Pakistan without customs duty or applicable taxes. While Rs15 billion worth of taxes should have been collected, not a single rupee was deposited, the reports tell. The issue came to light when a vehicle imported under the name of a Jordanian embassy staff member was seized, prompting the FBR to seek clarification from the Collector Customs Islamabad regarding more than 40 vehicles for which the Ministry of Foreign Affairs had issued letters of sale and purchase in recent years. The collector responded that not a single vehicle had been taxed.
Although the FBR instructed that all such vehicles be seized, none were recovered. Eventually, two vehicles were taken into custody, but only after their owners voluntarily approached the Customs Collectorate seeking tax clearance so they could legally dispose of the cars. Customs officials seized the vehicles and declared the action part of their performance, insisting that the request came too late.
Pakistani concerned citizens have stressed the need for a transparent inquiry to determine responsibility and ensure accountability for the massive loss incurred to the national exchequer. Officials involved in this process of corruption & irregularities must be brought to justice.
