FIRs lodged against textile firms

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ISLAMABAD: The Federal Board of Revenue (FBR) has registered first information reports (FIRs) against seven textile companies for misusing the new sales tax withholding regime, sources said. These firms, namely Tribal Textile (Lahore), Jamhoor Textile (Lahore), Shehzad Textile (Lahore), The Lahore Textile (Lahore), Salfi Textile (Karachi), Colony Mills (Multan), and Hussain Limited (Faisalabad), were found involved in multibillion rupee transactions in the name of fake companies.

Colony Mills and Hussain Limited alone caused a loss of Rs200 million to the national exchequer.

These companies misused the statutory regulatory orders that ordered six percent withholding tax deduction in case the products were sold to unregistered persons and one percent on the sale of products to registered persons.

The textile firms had declared these fake companies as registered ones.

“This shows that textile giants are misusing sales tax withholding regime,” FBR’s senior officers told The News on Tuesday. The Faisalabad’s Deputy Director Intelligence and Investigation (I&I) Inland Revenue (IR) along with his team raided the premises of the businesses of the accused persons nominated in the FIRs.

According to the report, a dummy firm was created in the name of Emman Apparels (Jhang Bazar Faisalabad). The team conducted a raid on the place and found no such business on the said address, it said. The team also raided the residence of accused Mukhtar Ahmed with the help of information downloaded from the system of the National Database Registration Authority (Nadra), it added. But, the team remained unsuccessful.

The raid was also conducted at the residence of one of the owners of Galaxy Traders, Karkhana Bazaar, Faisalabad, as well as the registered address of the enterprise. However, the shopkeepers in the area claimed they didnot know Qasim Zia, proprietor of the unit.

Furthermore, the team raided the premises of Ajmair Textile Industries Faisalabad to arrest Khaliq Ali, a member of the fake company. However, here too, nobody knew about the existence of the company.

After getting information from Nadra’s system, the team raided Jaranwala Faisalabad and one resident of that area told the team that Khaliq Ali stayed there but later, shifted to Millat Town Faisalabad.

The team raided Millat Town but was informed by the villagers that they did not know about whereabouts of the accused.

While one of the office bearers of a fake company, Muhammad Arif, was said to live abroad, the search for the office bearers of the other companies -- Chaudhry Zahid of Friends Industries, Muhammad Saquib of Pak Impex, Ghulam Yasin of Pakeeza Traders and Muhammad Imran of United Traders -- also led nowhere, concluded the investigation report.
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Courtesy: The News

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