In a significant move aimed at curbing the menace of non-custom paid (NCP) cars, the Federal Board of Revenue (FBR) in Pakistan has announced a countrywide crackdown on such vehicles. This operation comes in response to directives from caretaker Prime Minister Anwarul Haq and signifies a stringent approach toward NCP car owners. Unlike previous amnesty schemes, this initiative intends to seize these illegal vehicles and auction them to generate revenue for the government. Here's the reasons behind this crackdown, its implications, and the challenges it may encounter.
No Amnesty Scheme:
It's crucial to clarify that this crackdown is not part of an amnesty scheme for NCP car owners. Instead, it marks a shift towards a more stringent enforcement of the law. The government's policy is to cease NCP vehicles and auction them to collect revenue. This move comes in light of ongoing negotiations with the International Monetary Fund (IMF), where announcing an amnesty scheme would be contrary to the terms of the agreement.
Magnitude of the Issue:
According to media reports, the highest concentration of NCP cars is found in northern areas, particularly in the Malakand Division. Shockingly, it is estimated that there are around 450,000 NCP cars in Pakistan, whereas the government has records of only 128,000 of them. One of the reasons behind this staggering disparity is the five-year tax relaxation granted on NCP cars during the merger of Khyber Pakhtunkhwa (KPK) and the Federally Administered Tribal Areas (FATA) in 2018. This tax relaxation period ended on June 30, 2023, sparking concerns about the growing number of these unauthorized vehicles.
Government's Intentions:
Recent developments indicate a decisive operation against NCP vehicles is imminent, primarily due to pressure from ruling authorities. Officials in the Malakand Division have reported special orders from the KPK Chief Secretary to halt registrations of NCP cars, signaling an impending crackdown.
Challenges Ahead:
While the crackdown may seem like a straightforward solution, customs officials have expressed reservations regarding the logistics of dealing with such a vast number of seized vehicles. Finding sufficient storage space for these cars is one of the primary challenges. However, despite these logistical hurdles, the FBR is determined to proceed with the crackdown and seize NCP vehicles from all corners of the country.
The countrywide crackdown against non-custom paid cars in Pakistan is a significant step towards curbing the illegal import and operation of such vehicles. It signifies the government's commitment to adhering to international agreements and generating revenue through legal channels. However, the challenges of logistics and the time-consuming auction process may pose obstacles. Nevertheless, this operation is expected to have a positive impact on the country's revenue collection efforts and overall compliance with customs regulations. Non-custom paid car owners should take this opportunity to regularize their vehicles before facing the consequences of the crackdown.