FBR Rejects Amnesty Scheme for Non-Customs Paid Vehicles

Abdullah

17 Oct 2023

644

FBR Rejects Amnesty Scheme for Non-Customs Paid Vehicles

The Federal Board of Revenue (FBR) has officially ruled out the possibility of implementing an amnesty scheme for non-customs-paid (NCP) vehicles. This decision comes in the wake of significant price hikes across various vehicle categories by dealers in recent weeks.

IMF Program Constraints Prevent Amnesty Scheme

Afaq Ahmed Qureshi, the spokesperson for the FBR, has categorically stated that the concept of an amnesty scheme for NCP vehicles is not under consideration, especially while Pakistan adheres to an International Monetary Fund (IMF) program.
As per Qureshi's statement:

There is no such proposal under discussion or consideration in FBR. The social media is flooded with false information that FBR is contemplating an amnesty scheme for vehicles. These are nothing but baseless rumors.

Government Cracks Down on Illegal Money Traders

The government has taken stringent measures against illegal money traders, smugglers, and holders of both domestic and foreign currency. As a result, the value of the Pakistani rupee relative to the US dollar has decreased to approximately Rs277, down from a record high of Rs335 in early September 2023.

Dealers Advocate for Amnesty Scheme

Despite the FBR's stance, a coordinated effort is underway, particularly among dealers who have made substantial investments in NCP vehicles in regions like Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, advocating for the implementation of an amnesty scheme.

It's worth noting that a similar amnesty scheme for NCP vehicles was introduced back in 2010. However, this scheme was plagued with corruption and legal challenges, and it failed to significantly reduce the influx of illegally imported vehicles or boost revenue for the FBR.

Senior customs officers from the operations side, requesting anonymity, have clarified that there is no present consideration for an amnesty program to regularize NCP vehicles. However, sources indicate that security forces are pushing for such a scheme despite resistance from the tax department.

Call to Address Vehicle Trafficking from Afghanistan

H. M. Shahzad, chairman of the All Pakistan Motor Dealers Association, emphasizes the need for the government to address those involved in trafficking vehicles from Afghanistan. He highlights that these vehicles, aged between five to ten years, are entering through the Afghan port of Bandar Abbas. Rather than targeting smugglers, he criticizes the government for continuously contemplating schemes that primarily serve to legalize unreported income, thereby undermining national revenue collection.

Auto Industry Policies in Question

Mr. Shahzad also points out that local manufacturers have substantially increased their prices, suggesting contradictions in the government's policies concerning the auto industry.

The exemption for NCP vehicles in areas including the former Federally Administered Tribal Areas (Fata), Provincially Administered Tribal Areas (Pata), Balochistan, and Gilgit-Baltistan is slated to expire on June 30, 2024. Initially due to lapse on June 30, the PDM government granted it a one-year extension.

Federal Board of Revenue Amnesty Scheme NonCustoms Paid NCP Vehicles International Monetary Fund IMF Afaq Ahmed Qureshi Price Hikes Pakistan Illegal Money Traders Smugglers

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