The Public Accounts Committee (PAC) has directed the Federal Board of Revenue (FBR) to conduct an additional investigation into an alleged under-invoicing of Completely Built-Up (CBU) vehicle imports by a “private car company.” The committee demanded that a report be submitted within a month.
This order was issued by PAC during a meeting between committee members and FBR officials on Tuesday. FBR representatives updated committee members on the status of the under-invoicing case.
They claimed that the automaker had imported 11,223 vehicles and paid duty at the standard rate, adding that FBR has collected Rs. Thirty-six billion obligations on them. PAC chairman Rana Tanveer Hussain told FBR to continue investigating the matter.
Company in Question
Although the report did not name anyone, all indications point to MG. Last year, the company was subjected to a similar investigation.
The company allegedly imported 400 Completely Built-up Units (CBUs) from China and under-invoiced their customs value, causing a loss to the national exchequer of Rs. 1.1 billion.
However, according to a July 2021 report, the FBR acquitted Javed Afridi — a key stakeholder in MG Pakistan — from the case. According to an official statement from the board, the allegations leveled against MG Pakistan and Javed Afridi were false.
In a recent conversation with ProPakistani, a senior MG official who requested anonymity confirmed this report. He went on to say that MG will soon begin full-scale local assembly of its vehicles, solidifying its position in Pakistan.