KPK Excise Department Introduces Tax Plan for NCP Vehicles

Abdullah

20 Aug 2024

302

KPK Excise Department Introduces Tax Plan for NCP Vehicles

In an effort to address the issue of non-custom paid (NCP) vehicles in Khyber Pakhtunkhwa, the provincial excise and taxation department has devised a new strategy aimed at incorporating these vehicles into the formal tax system. The focus of this initiative is primarily on the Malakand Division and the newly merged tribal districts, where the concentration of NCP vehicles is particularly significant.

Data Gathering and System Integration

The department, with the help of Malakand Levies and law enforcement agencies, has compiled information on more than 110,000 NCP vehicles in these areas. This data, which includes the details of vehicle owners, chassis numbers, and registration numbers, has been uploaded to the department’s central database. The Federal Board of Revenue (FBR) will utilize this data to calculate the appropriate customs duties based on the engine sizes of these vehicles.

Suggested Customs Duties and Potential Enforcement

A representative from the KP Excise Department mentioned that while they have recommended specific customs duties for the NCP vehicles, the final approval will come from the FBR. The official also stressed that this could be the last chance for NCP vehicle owners to legalize their new vehicles by paying the necessary duties. Non-compliance may lead to the seizure of these vehicles.

Revenue Impact and Market Disruption

In a presentation to the provincial cabinet, the KP Excise Department highlighted the serious challenges posed by the rising number of NCP vehicles. These vehicles not only bypass taxes, resulting in significant revenue losses for the government, but they also disrupt the legitimate vehicle market. Additionally, they contribute to safety hazards on the roads and create unfair competition within the automotive industry.

Increasing Concern Over NCP Vehicles

Previous attempts to resolve the NCP vehicle issue have shown that the problem is escalating. For instance, a profiling initiative conducted in 2017-18 identified 99,334 NCP vehicles in the Malakand Division. By the end of 2023, this figure had surged to over 102,000 in the division and tribal regions, underlining the need for immediate action.

Statement from KP Excise Department

Responding to inquiries, a KP Excise and Taxation (E&T) Department official confirmed that the current plan is still in the proposal stage. The department is actively collecting data on NCP vehicles, and it will take some time to finalize the plan.

Recommendations for Regularization

In its recommendations, the department proposed allowing the regularization of one vehicle per CNIC. They also suggested offering a bulk registration option for vehicle dealers, with an additional 10% duty applied to each vehicle. The ultimate objective of this plan is to bring these untaxed vehicles into legal compliance and eventually eradicate the issue of NCP vehicles.

KP Excise Department NCP vehicles Khyber Pakhtunkhwa tax proposal Malakand Division customs duties vehicle registration FBR noncustom paid vehicles government revenue New Vehicle Price in Pakistan 2024 Used Vehicle in Pakistan 2024 Latest New Cars price in Pakistan Auto News garipk

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