ISLAMABAD: The Federal Tax Ombudsman (FTO) has asked the Economic Coordination Committee (ECC) to take decision on disposal of confiscated ambulances/suitable vehicles with tampered chassis number to the registered philanthropic organizations registered as non-profit organizations (NPOs).
The Federal Board of Revenue (FBR) data revealed that out of a total number of 4402 lots pending un-disposed of or pending in auction, 552 lots are pending due to awaited policy decisions from FBR.
A total of 182 lots are pending being under litigation at different legal/qhusai judicial fora and in the remaining, satisfactory bids have not been received against the higher reserve prices which were not properly revised downwards against these lots. Due to non-revision of their exorbitantly and unrealistically higher Reserve Prices, goods could not be auctioned despite auction offer of 54 times.
The auctionable goods and cut & weld/tempered vehicles are also not being disposed of, leading to colossal loss to the State and the Federal exchequer as well as leading to clogging and congestion at the port areas and at the Customs State warehouses.
This is an own motion investigation of the Federal Tax Ombudsman Ordinance, 2000 (FTC Ordinance) regarding large quantity of confiscated or otherwise goods and vehicles lying un-disposed at Customs formations all over the country, involving stuck up revenue amounting to billions of rupees.
The Customs Laws, Rules, Customs General Orders (CGOs) and instructions provide for expeditious disposal and auction of such goods and vehicles however, the Customs authorities are not disposing these goods and vehicles having tampered and non-tampered chassis numbers as required under the law, due to neglect, inattention and inefficiency of the Customs authorities.
The FTO has also observed that the Economic Coordination Committee (ECC)’s decision in Case No.44/3/2006 dated 03.03.2006 materialized in the shape of CGO 05/2018 dated 24.05.2018 but in its eligibility criteria at para 2, the said CCC is silent about the disposal of confiscated ambulances/suitable vehicles with tampered chassis number to the registered philanthropic organizations registered as non-profit organization in terms of section 2(36) of the Income Tax Ordinance, 2001.
This matter needs to be revised by ECC and FBR by taking it up for necessary review modification by submitting it as per SOPs to the ECC for consideration.
The FTO’s investigation said it is evident that non-application of the provisions of Customs law and procedures is causing unnecessary delay in auction/disposal of confiscated goods/vehicles etc. This is because of sheer negligence and inefficiency on part of the Customs Department, FBR and is tantamount to maladministration.
The FTO has recommended the FBR to direct Member Customs (Policy), FBR, to immediately decide the pending policy decisions leading to early disposal of 552 auctionable lots within 45 days.
The FBR Member Customs (Ops) and Director General I&I Customs, FBR to issue immediate directions to the Collectors/Directors concerned to completely eliminate the huge pendency of auctionable goods/vehicles and other goods ripe for disposal under the relevant provisions of law, within 60 days.
The FBR Member Customs (Legal), FBR to take immediate steps within 30 days for fixation of early hearings leading to decisions in cases pending before different judicial and qhusai judicial fora to expedite disposal of stuck-up confiscated goods at different Collectorates/Directorates, FTO order added.
Copyright Business Recorder, 2024
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