The importer of MG cars into Pakistan has denied allegations of trade-based money laundering (TBML) as his company seeks to establish a market position in Pakistan.
Originally one of Britain’s leading car marques and now ultimately owned by Chinese state-owned automotive giant SAIC Motor, MG and its importer have been accused of under-invoicing its MG HS model which launched in Pakistan late last year.
Some media reports suggest that the value of MG HS models as declared at customs is US$11,632 per unit whereas the advertised list price of the car in Pakistan is around US$34,000.
Other reports suggest that Pakistan’s Federal Board of Revenue has started an investigation into the TBML allegations.
But automotive entrepreneur Javed Afridi who owns MG Capital, the company importing the cars, has denied the allegations and said on Twitter that as a new entrant in the market he expected “maligning campaigns and baseless rumours” and said that car buyers in Pakistan had been “exploited by cartels” for many years.
Currently Pakistan’s automotive sector is dominated by Honda, Toyota and Suzuki but has been opening up since 2016 when Pakistan launched its Auto Policy 2016-21 which offers tax incentives to new automakers to establish manufacturing plants in the country. Afridi has said that he intends establishing such a plant to produce MG vehicles.
Categories: Trade Based Financial crimes News