FBR Rejects Amnesty for Non-Customs Paid Vehicles Amid Rising Prices
The Federal Board of Revenue (FBR) has firmly refuted any possibility of an amnesty scheme for non-customs paid (NCP) vehicles, as dealers in Pakistan continue to raise prices across various categories. Rumors of such a scheme have circulated on social media, but the FBR spokesperson labeled them as baseless.
Karobar
ISLAMABAD 10/17/2023: In a surprising turn of events, the Federal Board of Revenue (FBR) has emphatically denied any contemplation of an amnesty scheme targeting non-customs paid (NCP) vehicles. This announcement comes at a time when prices across various categories have seen a noticeable surge by dealers in recent weeks, creating a stir in the business and economic landscape of Pakistan.
The FBR's spokesperson, Afaq Ahmed Qureshi, took center stage on Monday to clarify the situation. He firmly stated that there is no proposal for such an amnesty scheme under discussion or consideration within the FBR. Addressing the baseless rumors circulating on social media, Mr. Qureshi stressed that the idea of such a scheme is currently untenable, especially as Pakistan continues to adhere to an IMF program, safeguarding its economic stability.
The government's proactive measures against illegal currency traders, smugglers, and individuals in possession of both local and foreign currency have had an impact. This crackdown has caused a notable depreciation of the Pakistani rupee against the US dollar, with the exchange rate now hovering around Rs277 per dollar, a contrast to the historic high of Rs335 in early September 2023.
Despite the official stance, there are indications of a coordinated effort, primarily by dealers who have invested significantly in NCP vehicles in regions like Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, advocating for the implementation of an amnesty scheme. However, it's crucial to remember that a similar scheme introduced in 2010 failed to deliver results, marred by corruption and legal disputes.
Senior customs officials, though choosing to remain anonymous, have expressed their reservations, given the past experiences with such schemes. Currently, there is no active consideration for an amnesty scheme to regularize NCP vehicles from their standpoint.
Reports suggest that despite resistance from the tax department, security forces are pushing for a scheme to regularize NCP vehicles. This proposal faces opposition from the customs department and was discussed during a recent meeting of the Peshawar apex committee.
H. M. Shahzad, Chairman of the All Pakistan Motor Dealers Association, has raised concerns. He urges the government to shift its focus to those facilitating the transport of vehicles from Afghanistan, especially vehicles aged between five to ten years entering through the Bandar Abbas port in Afghanistan. He criticized the government for repeatedly considering schemes that tend to legitimize undisclosed income, potentially affecting national revenue collection.
Shahzad also pointed out a significant contradiction within government policies concerning the automobile sector. While rumors of an amnesty scheme circulate, local manufacturers have considerably raised their prices, impacting the overall business landscape.
An essential point to note is that the exemption for NCP vehicles in regions like Balochistan, Khyber Pakhtunkhwa, Gilgit-Baltistan, and merged districts of the former Federally Administered Tribal Areas (FATA) is set to expire on June 30, 2024. Initially scheduled to lapse on June 30, the exemption was granted a one-year extension by the PDM government, leaving the future of NCP vehicles in these regions uncertain.
