Imported cars worth millions declared at thousands in Karachi

KARACHI: A major money laundering scheme has been exposed by the Directorate General of Post Clearance Audit, involving the under-invoicing of luxury vehicles imported into Pakistan for commercial purposes, ARY News reported.

According to the latest audit report from the faceless customs assessment system, expensive vehicles were cleared at shockingly low values.

One notable case revealed that a 2023 model Toyota Land Cruiser was declared at just Rs17,635, far below its actual market value.

The audit, which covered the faceless customs assessment period from December 2024 to March 2025, examined 1,335 import goods declarations.

The findings showed significant discrepancies between the declared values and the actual worth of the vehicles.

Importers declared a total value of only Rs670 million for all 1,335 goods declarations. However, customs officials assessed the actual value at Rs7.25 billion.

Initial duties collected on these vehicles amounted to just Rs1.29 billion, while the actual payable taxes and duties were estimated at Rs18.78 billion.

The audit also found that importers failed to provide legal documentation proving foreign currency remittances used to purchase these vehicles.

The report suggests that payments were made through informal channels such as hundi or hawala.

In one of the most serious examples, a 2023 model Land Cruiser, with an actual import value of over Rs10 million and due taxes exceeding Rs47.2 million, was cleared with a 99 percent under-invoicing rate.

The report concludes that importers not only committed tax fraud but also submitted false income declarations by showing lower vehicle values in their tax filings.

Authorities are now likely to take further action based on the audit’s findings, which expose deep flaws in the customs clearance system.

Also Read: Audit reveals 80 government vehicles missing in KP

Earlier, an audit report has revealed 80 missing government vehicles in the official records of the Livestock and Dairy Development Department, which were purchased for several livestock development projects in Khyber Pakhtunkhwa (KP) between 2007 and 2021.

In the audit conducted for the fiscal year 2023–24, major discrepancies have been found between the department’s submitted list of 97 vehicles and the Excise Department’s stats.