PETALING JAYA: The Customs Department was ordered to immediately collect RM50.46mil from a company that was wrongfully exempted from paying alcohol import duties, said the 2019 Auditor-General’s Report.
The report noted that the exemption given was invalid because it was only meant for undenatured ethyl of 99.5% purity level.
“The officer responsible did not countercheck the purity level declared on the customs form against the approval letter from the Duty Exemption Committee, and the tariff code of the raw material, ” according to the A-G’s 2019 Report.
The Customs Department had on Jan 6 this year informed the Auditor-General that they had notified the affected company on Dec 23 last year on the under-collected import duty.
The Malaysia Investment Development Authority (MIDA) had given an explanation letter on March 17 following a meeting between the Customs Department representatives and MIDA’s Tariff and Internal Audit section team four days earlier.
MIDA explained that exemption was given for undenatured ethyl of 99.5% purity level that was imported by a company as raw material, without taking into consideration its purity level.
“MIDA also informed that the Finance Ministry had also accorded excise duty exemption without specifying the purity level, ” it noted.
The A-G called on the Customs Department to carry out periodic auditing against companies given duty exemption to prevent loss of revenue.
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