Questions over import tax windfall

The conglomerate, whose ownership structure remains opaque, won the controversial bid last year to turn Ahlone Shipyard into an international port and applied for duty-free status for imports at the 20-hectare project, sources said. “Initially, the group requested that the commission allow it to import $30 million worth of goods duty free,” a source at the commission said. “Later, the group made another request to change the import value to $900 million for various kinds of merchandise, explaining that its first calculation was wrong,” the official said. 

The official said the same kind and number of items were listed on both requests but all values were raised on the second one. The second request was approved by the commission despite the staggering rise from $30 million to $900 million, the official said. The list includes $80,000 sport utility vehicles and luxury cars worth more than $100,000 each.

Sources at the commission said the second request was approved without a detailed and transparent review. 

The request was delayed last week by the ministry , an official said. The commission has been asked to review the matter for security reasons. 

Most firms apply for tax relief each year. Import taxes have been cut for more than 90 companies investing under the foreign investment law as a development incentive. But the state could lose tens of millions from this one duty-free deal, sources said.