EDITORIAL: Now that tax authorities have ruled out any amnesty scheme for non-customs paid (NCP) vehicles, the government should take the next practical step by cracking down on smuggling that is at the root of this demand, as suggested by the All Pakistan Motor Dealers Association.
It turns out that such rumours were being spread, as usual, by dealers who have invested heavily in NCP vehicles especially in Balochistan, KP (Khyber Pakhtunkhwa) and G-B (Gilgit-Baltistan).
Curiously, though, FBR mentioned the compulsions of the IMF programme when ruling out the “baseless conspiracy” instead of taking a principled position on the matter.
Since this follows strict government action against unlawful money traders, smugglers and hoarders, pushing up the local currency even when the dollar was on the ascent in international financial markets, it is only logical for the crackdown to extend to other, similar matters that feed the black economy at the cost of the national exchequer.
It should, in fact, have moved against vehicle smuggling a long time ago, especially after the failed amnesty scheme of 2010. It was not only riddled with corruption and legal disputes, but also failed to generate substantial revenue or reduce the influx of smuggled vehicles.
Yet here we are, still struggling to control a flood of “baseless rumours” on social media when this issue should have been dealt with, definitively, at least a decade ago.
Considering that we are in the thick of an IMF bailout programme – without which the country would surely tumble into default – and there’s no question of any amnesty scheme till it expires, the state should also take a firm position on such things.
Reportedly, despite stiff resistance from the tax department, there is a “significant push” from “security forces” to regularise NCP vehicles. Surely, this cannot be because as guardians of the country’s borders they advocate mainstreaming smuggling instead of stopping it. So, while the rejection of all rumours is appreciated, more needs to be done to ensure compliance at the borders.
It seems that certain quarters, including political parties, have still not learned that amnesty schemes never work as intended, at least in Pakistan. When the PML-N (Pakistan Muslims League-Nawaz) government opted for one, the opposition of the time, led by PTI (Pakistan Tehreek-e-Insaf), protested and vowed to dismantle it after winning the election.
Yet when it came to power it floated more such schemes, including one dedicated to the real estate sector that priced property out of reach of the middle and lower income groups. Each time tax evaders and smugglers were able to cleanse their black money and not much came the way of the national kitty.
Considering the precarious state of the economy, and how action against dollar smugglers straightened out the currency market, it is time for a thorough, coordinated crackdown against all sorts of smuggling and hoarding.
A lot of the bad guys have traditionally enjoyed political protection, so corrective action will require very strong will all the way up to the very top. But the same was true of the currency racket, and when push came to shove and the economy came perilously close to complete collapse, the state was able to take prompt and effective measures. Now it needs to repeat that performance across the board.
Copyright Business Recorder, 2023
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