Revenue Board urged to cut customs duty on smuggled vehicles

IQBAL KHATTAK
Business Recorder

PESHAWAR (January 22) : A tax collection authority has urged the Central Board of Revenue (Revenue Board) to lower duty on non-custom-paid vehicles as amnesty scheme goes unnoticed since its announcement on December 16, last year."Till now, not a single case has come up. And apparent reason for this looks to be exorbitant customs duty (on non-custom-paid vehicles)," a source in the Customs Department told Business Recorder.According to classified documents, Rs 448,000 custom duty was slapped on a smuggled 1998-model Toyota (petrol) vehicle while for the same model car with diesel engine, the custom duty is Rs 67,300. "We don't think that someone will be ready to pay that much tax. In open markets, such model cars are available on lesser prices," the source, requesting anonymity, stated.

A 1998-model vehicle with diesel engine can be purchased at a price of Rs 57,500. "There is a big difference. We believe so," the source added. The government fixed January 31 as deadline for paying tax on cars smuggled in from Afghanistan and ordered confiscation of all non-custom-paid vehicles after the deadline expiry. .The Customs Department officials in Peshawar also asked for a minimum two-month extension in the deadline."Our observation and assessment is that the Revenue Board should hear our requests patiently. We think this the best way to allow owners of smuggled cars to avail of the amnesty scheme," he replied to a question.

The official source said on January 1 a letter was sent to the Revenue Board in this connection. However, upon receiving no reply from the Revenue Board officials in Islamabad a similar letter was again despatched on Wednesday. A new and old cars dealer in the city told this scribe that the duty was very high and it could hardly attract owners of smuggled cars. "Our information says there is no encouraging result of the amnesty scheme. To get smuggled cars taxed the government has to review its decision," he opined. The Revenue Board, meanwhile, is considering a 30 percent to 33 percent reduction in the duty to make the scheme a success.

It was said NWFP Governor Lieutenant General Muhammad Shafiq (Retd) also got himself involved to press the central taxation authority for reduction in the custom duty. Hundreds of smuggled cars, including Mercedes Benz, playing in Peshawar and adjacent tribal areas, are priced very cheap. The 1998-model Toyota Corolla is only for Rs 180,000 in tribal areas. Mostly influentials prefer to have these smuggled luxury vehicles.