Pakistan Auto Manufacturers Authorized Dealers Association (PAMDA) Vice Chairman Iqbal Hussain Shah lamented the decision of the Federal Board of Revenue (FBR) to regularise non-duty paid smuggled vehicles under a new amnesty scheme.
The move, he said, would deepen the crises of local auto industry while giving a cover to illegal businesses at the same time.
“It is very sad that the government is patronising illegal trade to benefit a few and to demolish the local auto industry with which thousands of people are associated. This is beyond any comprehension,” he said.
The FBR on Tuesday issued SRO 172(1)/2013 stating that the federal government is “pleased” to direct that smuggled or non-duty paid motor vehicles, having non-tempered engine or chassis numbers, which have been seized or voluntarily presented to Customs on or before the 31st March 2013 shall be allowed release on payment of redemption fine along with duty and taxes.
The deplorable thing, Shah added, was that the scheme would also be applicable on vehicles, having an age beyond 5 years, which is a clear attempt to jeopardize the local auto industry. “It is strange that the government is taking such steps instead of supporting local industries. They are out to destabilize the investment of billions of rupees,” he added.
He further said the scheme is meant to help the influential of the country who are involved in smuggling and doing a great deal of damage to the economy. “A media report citing the Customs intelligence said the scheme is to benefit 2.3 million non-duty paid smuggled vehicles. This will immensely the local car industry of the country,” said Shah.
This scheme has allowed 60 to 70% depreciation in value of used cars for assessment of duty in case of five-year-old used cars, while in case of those older than five years, five percent real depreciation in value per year for assessment of duty is allowed. Similarly, more than 14-year-old cars would be made subject to a flat rate of Rs 50,000 to Rs 100,000 depending on their make-up, while only one percent redemption fine would be imposed on used cars.
“At present the government allows import of only three-year-old used cars. However, the amnesty for smuggled vehicles has no age limit and can be used for legalisation of any car smuggled into the country through illegal routes. Who is going to save the local auto industry from this blatant damage?” Shah remarked.
“For example, with a minimum cap of $500 on 1800cc and below cars and $1000 for above 1800cc cars, a land cruiser of 1998 or 2000 model would just pay $1000 to get the status of an officially duty-paid vehicle. This advantage would only be for a particular class–which have bought smuggled used cars in the past few years and not paid any duty and were using fake number plates,” said the PAMDA official.
He said a similar sort of amnesty scheme was given to ambulances which are nowadays used as commercial vehicles. “The biggest threat is Afghan Transit Trade as those vehicles can now easily be given official status at extremely low duty rates,” he added.
Shah said it was an irrational estimation which stated that the amnesty scheme would yield Rs 8 to10 billion for the national exchequer, adding that the government ignored the fact that the local auto industry paid more than this amount, only in of taxes. “They are going to make themselves content on a small share of revenue through smuggled and illegal used cars at the cost of huge revenue they receive from the local auto industry,” he said.
Shah said it was beyond comprehension why the government had taken another unpopular decision ahead of general elections and at a time when they were being criticised for their anti-investment policies in their five-year tenure. “It seems the decision makers have lost interest in making the country an investment-friendly nation,” he added.
This is the second amnesty scheme announced by the PPP-led coalition government. Last year, the government gave amnesty to those who wanted to whiten their black money by making investment in the stock market.
Since then, Shah said, the government had miserably failed to stop vehicles being smuggled into the country. They are launching such schemes at the expense of local industries which reflected short-sightedness of policy makers. “This amnesty scheme for smuggled vehicles has shown the world that the government itself is encouraging unlawful activities,” he concluded.
I have gone thru 3 engines on my suzuki. Do you mean I tempered with my engine???
Basically if you have not reported the engine changed and did not get it changed on your registration papers, you could be in trouble.
chalo ji. mehran baicho.. non custom paid accord khareedo aur phir usay legal karwa lo.
and btw, yeh local motive ny hamain dia hi kia hay aaj tak, "MEHRAN"
its big frad i think……….
Let's christian it the "Abdul Qadir Gilani & Co. Law"
"“This amnesty scheme for smuggled vehicles has shown the world that the government itself is encouraging unlawful activities,”
Encouraging? It is drowing in "unlawful activities" and this is but a drop in the bucket.
very good and beneficial decision we are proud of this government for working and assisting poor and needy people and regularizing the non custom paid vehicles by improving the economy of our country.
the amnesty scheme is very good program for poor people of Pakistan specially for Baluchistan and khabar pashtoon khwa don't worry please wait and see what is doing govt
I m fail to understand what auto mobile of pal made gave us do you justified the standard of cars they offer in so high prices and you people are unaware of owned (extra) money they charge and play havoc with our minds delivered lowest quality vehicles. The people who have non paid vehicles are driving and if they pay and legalized the vehicles whats wrong. Doesn’t we need revenue, few selfish rich auto mobile dealers are in pain to up the standard and pain of bit less profit, they highjakers wants to retain their monopoly. Sham for them. They can’t match they offer so low qulity vehicles and work only on commission. Mental is worth to pkr 700,000. Shamless they manufacturer. They have not match for even 10 years old imported vehicle. We need Aditional revenue, our country is facing electricity crices, energy crices, we are in war status but few dealer think of only to be more richer. , shame for them , we need revenue, atleast try to overcome the Jin of loadsheding. I Salam to the decision of Govt on amnesty sceame. Think guys and vote if you think I write for common people not few highjackers of auto industry . Kamran
during the dats when terrorist acttivities are rampant in the country , due to this scheme most of the vehicles will be regularized and such vehicles will ot be utilized for such terrorist activities. secondly the lolcal automobile industry ha always looted the poor people of pakistan by charging huge prices and charges in the name of OWN, besides the chairman of the local car dealer association is boosting of making huge payments in the name of taxes, he should recall himself wt Indus Motors has done while the company itslef was importing the the assembled cars. this scheme is just for 20 days so lets be patient and get the smuggled cars regularized and later it will be duty of the govermnet to take strtict actions against the illegal vehicles and stop the smuggling of more vehicles.
but jo notification kal raat fbr py aya ha aos tarhan tu koi benefit nahi ha infact price market wali hee ban jati ha.. koi sehi calculated kr day formula… jo newspaper main ha sb yehi samjh rahay thy par raat ko pata nahi kasay notification py formula calculate kiya ha.. kindly kisi ko confirm formula pata ha tu bata doo
han yar me too worried. in this case it will be very expensive. suppose if you want to get regularize a 1500 cc 2000 model you have to pay well above 4 lac. i think at this rate no one will go to the customs authorities and surrender his vehicle.
plz clarify if any body has any info.
i think itnni zyada duty he , koi bee apni gharii rigistrdd nahi kerwaye ga ,
4700cc and model 2001 how much custom i have to pay for
it
had the amensty been extended for sumugled cars?? any one to reply instantly pls
had the amnesty been extended for sumugled cars??
very good scheme for us. And anxiously. waiting for date extend. Abida
there is no information of date extention
plz inform us if there is any good news for date extention.
plz information us through your regular website or email
But now the scheme has failed………. according to the Islamabad court descison
we don't want local industry. please roll back your plants from Pakistan. you are sucking the economy of Pakistan. only for 20 billion rupees, Pakistan losing a 100 billion rupees direct tax income which can be earned on import and reexport of vehicles.
foolish people. never thinks that we can earn a lot of money to resell these cars to africa and neighboring countries.
Comments are closed.