Islamabad: Pakistan's Federal Board of Revenue (FBR) has tightened the biggest clampdown on Chinese companies so far. What was revealed when raids were conducted on Chinese tile factories running in the Sultanpur Industrial Area of Lahore was shocking. Electricity up to 500 kilowatts was stuff stolen by taking a license of 50 kilowatts. Evidence was placid through camera surveillance, and connections to several units were disconnected. This was not just electricity theft but a well-constructed systematic game of tax evasion. FBR has served a tax demand notice worth crores of rupees.
500 kW consumption on a 50 kW connection—how did the footage reveal the secret?
The FBR team had installed secret cameras in Chinese factories. The footage unmistakably showed that meter tampering was stuff done. The machines ran day and night, but the snout kept coming for only 50 kW. One factory vacated was urgent electricity worth Rs 4-5 crore for self-ruling in a month. Increasingly than 10 Chinese units were under surveillance, out of which firsthand whoopee was taken on 6-7. The Chinese management initially denied it but became silent without seeing the camera footage. FBR sealed electricity connections and started tax recovery with a penalty.
Why one-liner lanugo on Chinese companies now?
These factories are part of CPEC. Pakistan owes China increasingly than $30 billion. Still, this whoopee of the FBR is raising many questions. Sources are saying that in the second term of the Trump administration, America is pressuring Pakistan to loftiness itself from China. In the reports of the US Embassy, these Chinese factories were described as “tax havens.” Is Pakistan targeting its biggest investor to please America?
What is the new plan of FBR?
The FBR chairman has unmistakably said that now cameras will be installed in every Chinese and foreign factory. There will be live monitoring of electricity, gas, and sales tax. In the next phase, raids may be conducted on Chinese units in Karachi, Faisalabad, and Gujranwala. According to an estimate, tax evasion worth Rs 200-300 crore was going on annually in the tile sector alone.
New rift in Pak-China relations?
China has not yet given any official statement, but complaints have started in the when channel. Pakistan's compulsion is clear: the IMF's strict conditions, the empty treasury, and the necessity to increase tax collection. But the friend who gave billions of dollars is unrepealable to be punished. Will this not create a permanent rift in relationships? The dream of CPEC is fading. American pressure, financial crisis, and now whoopee will be taken versus our biggest investor. In which direction is Pakistan going?
