Non-duty paid smuggled vehicles: amnesty scheme valid till March 31
The new amnesty scheme of the Federal Board of Revenue (FBR) for regularisation of non-duty paid smuggled vehicles on payment of duties/taxes will remain valid upto March 31, 2013. Sources told Business Recorder here on Tuesday that the draft notification has been vetted by the Law and Justice Division. The notification on the amnesty scheme has been duly signed by the competent authority which would be issued on Wednesday (today).
Copyright Business Recorder, 2013
Ministry of Finance has already given approval of the scheme being notified by the FBR. The notification would give legal cover to the non-duty paid smuggled vehicles for a specific time period. Taking a right step towards documentation and safety, the new scheme would help in bringing over 100,000 vehicles into the formal regime. The depreciation upto 60-72 percent would be available on the non-duty paid cars, depending on the age of the vehicle. The said scheme would be applicable till March 31, 2013, they said. Different slabs of depreciation have been specified in the scheme ranging between 60 percent to 70-72 percent.
One of the main benefits of the amnesty scheme would be that non-duty paid vehicles could not be used in illegal/criminal activities as the same would be legalised through a lucrative incentive for documentation. In this way, documentation of such vehicles would ensure safety at national level. Another major benefit of documentation of smuggled vehicles is that the owners would have to pay the token tax on regular basis, which comes to around Rs 1-2 billion per annum.
The scheme would also be applicable on the vehicles, having age beyond the period of 5 years, sources said. Sources said that the vehicles like jeeps having higher engine capacity would generate more revenue as compared to small vehicles. However, all kinds of such vehicles in Balochistan or Gilgit Balitistan or Swat area etc would be covered under the said scheme.
Meanwhile, a senior FBR official confirmed that the SRO on the amnesty scheme has been signed for issuance. The SRO would specify that engine capacity of the vehicle to be legalised along with the specific rates of redemption fine to be applicable under the scheme. This would not be an area specific scheme but it would cover the whole of the country. Under the existing customs laws, the non-duty paid vehicles are confiscated by the customs department without fail and later the vehicles are disposed of under the auction procedure.