The Customs high-ups have finally decided to take stern action against ZTE Pakistan for massive irregularity in duties to settle the dispute once for all.
According to the available documents, National Accountability Bureau (NAB) has disclosed the details of the financial scam of different telecom operators, but ironically the authority did not mention a similar scam by Zhongxing Telecom Pakistan (Pvt) Ltd. Some foreign companies try to use backdoor channels with the help of corrupt officials of Federal Board of Revenue (FBR) to get rebate in taxable profits, despite making millions in profits in Pakistan.
It was reported that Rs 1.492 billion are recoverable in the form of custom duties from M/S Zhongxing Telecom Pakistan (it is called as ‘ZTE Pakistan’ in the market) till May 31, 2012, according to the May 3 order of the Islamabad High Court, but the said amount is yet to be recovered.
The irregularity came to light when ZTE entered into a contract with PTCL for the installation of telephone exchanges in 2001 for which ZTE imported certain components. Later, the customs officials found that all the exchanges were imported by the company without paying any customs duty.
Though ZTE filed a petition against the court order and the stay was granted in just three days, raising doubts about the involvement of high-ranking government officials. The NAB and the FBR have reached an agreement to give no waiver and the tax has to be recovered.
When NAB officials asked for not taking any action, they replied that the case was with the Supreme Court and they would only take action against them once the detailed judgment was announced.
