Gilgit–Baltistan jurisdiction: FBR suggests amnesty scheme for legalisation of 800 vehicles

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue has proposed to the Ministry of Finance an amnesty scheme for legalization of around 800 non-duty paid smuggled vehicles in Gilgit-Baltistan.

Sources told Business Recorder here on Tuesday that the FBR’s proposed amnesty scheme would be area specific applicable on vehicles used within the territorial jurisdiction of Gilgit–Baltistan and not in the rest of the country.

The local excise and taxation department of Gilgit-Baltistan has allocated local numbers to these 800 smuggled vehicles. No duties and taxes have been paid on these vehicles and therefore they would be immediately confiscated in case they entered into tariff areas of Pakistan. The local authorities of Gilgit-Baltistan have requested FBR to allow legalization of non-duty paid vehicles through an amnesty scheme.

Under the proposed scheme, the FBR will charge applicable duties and taxes on the said vehicles without imposition of redemption fine. The vehicles would be declared as legalized and would be allowed to move throughout the country. Once these 800 vehicles are legalized, Gilgit-Baltistan administration would have to take preventive measures for confiscation of smuggled vehicles in future.

As per existing custom laws, non-duty paid vehicles are confiscated by the customs department and auctioned off. Under the customs laws, there is no option of amnesty scheme for payment of reduced amount of duties and taxes for the regularization of non-duty paid vehicles.

There is a concern that if the area specific amnesty is allowed to Gilgit-Baltistan other areas can also demand similar kind of scheme. The FBR has discussed the legal and procedural implications of the proposed amnesty scheme with the Ministry of Finance, sources added.