Tax authorities have busted a network involved in smuggling gold to India by exploiting a facility that allows jewelers to import/export the precious metal.
The authorities have revealed that a large number of exporters/importers used fake addresses for registration.
It was found that these traders were exporting artificial jewelry and smuggling gold ornaments to India.
This has cost trillions to the national kitty so far because gold import is very expensive in India due to high duties.
High import duty of 10 percent in India is the main cause of smuggling of gold from Pakistan to the neighboring country, the source added.
The officials at the Regional Tax Officer (RTOII) Karachi also confirmed the report.
Tax managers said the scheme allowed gold traders across the borders to import and export a large amount of gold jewelry and ornaments.
After receiving credible information, the investigation department of the Federal Board of Revenue (FBR) swung into action and unearthed the traders' network that cost trillions in losses to the national exchequer.
We still don't know what action will be taken against them.
A report of the Auditor General in 2016 had mentioned that similar gold smuggling schemes had caused a substantial loss of Rs. 2.706 trillion to the national kitty.
The tax managers have asked FBR to halt payments of this illegal trade through hawala/hundi.
The State Bank of Pakistan (SBP) has also asked the finance ministry to formalize the payment system to only allow payments through the interbank market.
Source: Pro Pakistani