A large-scale customs fraud involving the under-invoicing of luxury imported vehicles has been uncovered by the Directorate General of Post Clearance Audit.
According to an audit report, 1,335 luxury vehicles were imported between December 2024 and March 2025. These luxury vehicles were cleared through Pakistan Customs using the faceless assessment system. However, the declared values were significantly lower than their actual market prices.
In one shocking case, a 2023 Toyota Land Cruiser was declared at just Rs17,635, despite having an estimated value of over Rs10 million. The due taxes on this vehicle exceeded Rs47.2 million, but were largely evaded.
The total declared value of all 1,335 luxury vehicles stood at Rs670 million, while the actual assessed value was Rs7.25 billion. Initial duties collected were Rs1.29 billion, but the audit estimated the real tax liability to be Rs18.78 billion.
Authorities believe the fraud was enabled through informal payment channels such as hundi and hawala, as most importers failed to provide evidence of foreign currency remittance through legal banking channels.
The report also states that many importers submitted false income declarations by recording lower vehicle values in their tax filings. This not only resulted in massive tax evasion but also violated financial and legal regulations.
Officials called it a serious failure of the faceless customs assessment system, which was introduced to promote transparency and reduce human interference. The system, however, appears to have been exploited by importers to under-declare the value of luxury vehicles.
Further investigations are expected, and action may be taken against those involved. The report recommends urgent reforms to close loopholes in the customs clearance process and prevent further loss to the national exchequer.
This revelation comes amid growing concerns over misuse of public systems. A recent audit of the Livestock and Dairy Development Department in Khyber Pakhtunkhwa also found 80 missing luxury vehicles from government records.
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