Thursday, February 22, 2024

FBR will restart investigation into the MG Motors vehicle under-invoicing scandal

Public Accounts Committee has asked the FBR to reopen the investigation into the MG Motors under-invoicing scandal. The carmaker has accused of under-invoicing the value of its CBUs and engaging in tax evasion in 2021.

According to reports, FBR had obtained papers showing that the MG HS automobile has marketed at $11,632. It grossly underestimated the customs value of the vehicle in Pakistan. On the other hand, the same automobile has sold elsewhere for more than $27,000.

MG Motors imported roughly 10,000 automobiles last year and these have under invoiced. However, the CBU vehicle’s claimed value was far lower than even the CKD kits for the identical vehicle. That indicates that a finished car has approved at Karachi Port against a value much lower than the value of its components.

In the MG Motors under-invoicing scandal, reports claim that the former PM’s secretary Azam Khan, FBR member in charge of customs operations Tariq Huda and Javed Afridi have involved. They worked together to provide Javed Afridi unlawful benefits and their tight link was well-known under the previous administration.

Moreover, customers have accused MG of fraud in the past. Few customers complained about delivery delays but others claimed that the firm wouldn’t deliver until they paid the On-Money/Premium fee. Therefore, Karachi’s consumer court punished MG earlier this year for delaying the delivery of vehicles.

Read Also: Cars production capacity in Pakistan will reach 300,000 this year

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