FBR denies amnesty scheme for non-customs paid vehicles

The Federal Board of Revenue (FBR) has quashed rumors of an impending amnesty scheme for non-customs paid (NCP) vehicles, dismissing these claims as baseless and asserting that no such proposal is under discussion or consideration. This clarification comes at a time when vehicle prices have noticeably surged across various categories over the past few weeks, leaving consumers and dealers concerned.

According to FBR’s spokesperson, Afaq Ahmed Qureshi, the notion of an amnesty scheme for NCP vehicles is out of the question, particularly as Pakistan remains committed to an International Monetary Fund (IMF) program. 

The rumors of an amnesty scheme have been fueled by a coordinated effort, particularly from dealers who have heavily invested in NCP vehicles in Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, advocating for such a scheme. However, senior customs officials have cited past experiences of corruption and legal disputes associated with a similar amnesty scheme introduced in 2010. To them, the prior scheme proved bitter experience and failed to effectively reduce the influx of smuggled vehicles or generate substantial revenue for the FBR.

In light of these past issues, the FBR appears to be hesitant to consider a new amnesty scheme for NCP vehicles. Nonetheless, sources indicate that there is significant pressure from security forces to contemplate a scheme for the regularization of NCP vehicles, despite opposition from the customs department. This matter was even brought up in a recent meeting of the Peshawar apex committee, sources added.

Chairman of the All Pakistan Motor Dealers Association, H. M. Shahzad, suggested that the government should focus on those facilitating the transport of vehicles from Afghanistan, emphasizing that these vehicles, aged between five to ten years, are entering via the Bandar Abbas port in Afghanistan. He criticized the government for repeatedly considering schemes that primarily serve to legitimize undisclosed income, potentially affecting national revenue collection.

Mr. Shahzad also noted that local manufacturers have significantly increased their prices, raising concerns about the inconsistency in government policies regarding the automobile sector. Additionally, the exemption for NCP vehicles in certain regions is set to conclude on June 30, 2024, after receiving a one-year extension by the previous government. The exemption initially was due to lapse on June 30, indicating upcoming changes in the regulations for these vehicles in these regions.