Amnesty Scheme for smuggled motor vehicles
THE Government had introduced an Amnesty Scheme on 5th March, 2013 for smuggled or non-duty paid motor vehicles, having non-tampered engine or chassis numbers, which have been seized or voluntarily presented to Customs on or before the 31st March, 2013. Under the Scheme the aforesaid vehicles were allowed to be released on payment of redemption fine along with duty and taxes. The redemption fine to be charged was to be 1% of the payable duty and taxes, and the scheme warranted that the customs-duty and other taxes along with redemption fine so levied thereon were paid on or before the 31st March, 2013.
Then came a Press Release, which mentioned -
The amnesty scheme notified by the Federal Government, for legitimizing the smuggled and non-duty paid vehicles upon payment of duty and taxes, will expire on 31st March, 2013. The scheme will not be extended beyond 31st March, 2013. The rumors suggesting possible extension in the deadline are absolutely unfounded.
2. Those seeking to avail of this facility of the amnesty scheme must therefore present their smuggled / non-duty paid vehicles to Customs, latest by 31st March, 2013.
3. It is further clarified that the Federal Board of Revenue is determined to redouble its drive against such vehicles after the expiry of the amnesty scheme on 31st March, 2013. Instructions have been issued to the Customs field formations to impound such vehicles, besides lodging FIRs against the persons found in the ownership or possession of these vehicles, provided they are not got legitimized under the amnesty scheme, upto 31st March, 2013.
Those ‘unfounded' rumours were not unfounded after all.
The Amnesty Scheme saw an extension till the 6th April, 2013 and the Government came out with another Press Release.
Federal Government's Amnesty Scheme for smuggled and non duty paid vehicles has received phenomenal response. Till March 31, 2013, over 34,000 vehicles have been assessed to import duty and taxes at various custom offices all over the country. The total revenue collected on such vehicles is approximately Rs. 10 billion.
The success is unprecedented compared to the identical facilities allowed in the past. Customs offices have been working over the weekend, beyond the normal call of duty for this to happen.
Considering the wide response and the demand, the Government has extended the last date for availing the Amnesty to 6th April, 2013. The persons in possession of non duty paid and smuggled vehicles can now surrender such vehicles to customs and get them legalized through payment of duty and taxes till 6th April, 2013.
Meanwhile, all Customs offices, in response to the queries received from the Office of Federal Tax Ombudsman, will cooperate with them and provide the data and record of the vehicles assessed so far.
Every Amnesty Scheme attracts criticism and this scheme too has had its fair share.
The reason -
+ It is learnt that as many as 50,852 vehicles have been legalized in just one month which included only 7324 confiscated vehicles meaning that more than 40,000 vehicles were imported under this scheme for trading purpose.
+ The stats reveal that some of the world's most expensive and luxury vehicles were legalised under the scheme which includes Lamborghini Gallardo, Rolls-Royce, Mercedes-Benz S/E Class, BMWs, Range Rovers, Cadillac, Bentley, Jaguars, Ford Mustangs and other luxury SUVs like Land Cruisers, Prado, Lexus and Mitsubishi Pajero.
Flummoxed about which country we are referring to. It is our neighbour - Government of Pakistan.
DDT knows that many in our country too would be interested in such a scheme. There are several cases pending with different authorities.