Lahore
Morris Garages (MG) officials in Pakistan state that the rumours relating to under invoicing are absolutely false and baseless and are nothing but a panic response to the tremendous success of the introduction of British automobile brand – “MG” in Pakistan.
The officials further states that MG JW Automobile (Pvt) Ltd (MG Pakistan) is a joint venture between JW SEZ (Pvt) Ltd and SMIL. SMIL owns the majority shares in the joint venture and is a subsidiary of SAIC, which is the largest auto manufacturer in China and the seventh largest in the world. In 2006, SAIC purchased the prestigious British brand “Morris Garages (MG)” and is now marketing automobiles under that brand all over the world.
Under Green Field Policy, SAIC’s joint venture company is setting up, a state-of-art local assembly plant for MG automobiles in Lahore.
The Financial Dictionary defines the expression ‘under-invoicing as “The act or practice of stating the price of a good on an invoice as being less than the price actually paid” to evade customs duty.
In Pakistan, the importers set up their own companies abroad, then get those companies to purchase products abroad and then the Pakistani company pretend to purchase and import that product from its own company abroad at a far lower price with the sole object of evading customs duty, something that is obviously illegal.—PR
