A Peshawar-based textile company has been caught in a multi-billion-rupee tax evasion case after allegedly misusing the Export Facilitation Scheme (EFS).
Investigators from the Directorate of Post Clearance Audit (PCA), Customs North Islamabad, revealed that Premium Textile Blanket Industry imported over 2,800 metric tons of fabric duty- and tax-free, claiming it would manufacture garments for export to Afghanistan. Instead, the goods were diverted to the domestic market, breaching customs regulations.
When officials conducted a surprise stock check, they found no imported fabric at the factory, confirming that the materials had already been sold locally.
Customs authorities subsequently raised a demand of Rs. 1.9 billion in evaded taxes and duties, and the Collector of Customs (Adjudication), Islamabad, ruled in favor of the department.
The company appealed against Order-in-Original No. 180/2024 dated August 30, 2024, but the Customs Appellate Tribunal in Islamabad rejected the appeal and imposed an additional surcharge exceeding Rs. 3.9 billion, further tightening enforcement against export-related fraud.