Vehicle smuggling in FATA

In a commendable decision, the Central Board of Revenue (CBR) has rejected a proposal that the Prime Minister's Secretariat and the NWFP Governor had sent it, asking for a new customs amnesty scheme for non-duty paid smuggled vehicles in the Federally Administered Tribal Areas (FATA).
This, in fact, is not the first time that some quarters in the government have sought relief for the smugglers of non-duty paid vehicles from Afghanistan into Pakistan.
During the recent years, the government has announced three amnesty schemes, the first one on April 11, 1998, the second on June 12, 1999 and the third on December 16, 1999.
Repeated concessions such as these can actually work as an incentive for the smugglers to keep on bringing in vehicles from across the Afghan border.
In its response to the government request the CBR has said the same thing albeit in an indirect manner as it did earlier that there is no assurance that a fresh amnesty announcement will put an end to future smuggling of vehicles.
There may be a demand, it averred, after some time for yet another amnesty since those granted in the past failed to eradicate the menace of smuggling.
It will also be worthwhile to recall that not long ago several press reports had mentioned the existence of a big car smuggling racket in both the NWFP and Balochistan.
That, of course, is no more news in the present context. What may still be of relevant about these reports was their disturbing disclosure that the racket was being run by close relatives and supporters of the high and mighty of the land.
Which may lend strength to a public suspicion that those well-connected elements may be behind the new move for amnesty.
Whatever the government consideration behind the request for amnesty for the FATA vehicle smugglers, it is an unfair solicitation.
It hardly needs saying that the law of the land must apply equally to citizens living in all parts of the country.
The vehicle duty rate in this country being as high as it is, those residing in the officially designated smugglers' havens cannot ride around in non-duty paid vehicles without creating resentment among the law abiding citizens in other parts of the country.
Besides, concessionary treatment for the smugglers in FATA can hurt the local car industry. As the CBR has pointed out, the local assemblers are already resisting the proposed lowering of tariff rates on car imports; they will not accept a duty waiver on smuggled vehicles.
The government must make a concerted effort to discourage rather than to encourage the smuggling.
The CBR has come up with a reasonable proposal in this respect. Afghanistan, it pointed out, has recently announced the imposition of a tariff regime for its imports. It is yet to declare the tariff rates for vehicle imports.
When it makes a decision on the subject, that may reduce smuggling into Pakistan. At that point, the CBR has suitably argued, it would make sense to regularise vehicles that have already arrived in the country, but not without punitive tariff on grounds of equity.
Meanwhile, the government would be well advised not to try and create unnecessary distortions in the market.