PCA initiates audit of vehicles cleared under 2013 amnesty scheme

KARACHI: Directorate General of Post Clearance Audit (PCA) has initiated audit of vehicles cleared under the 2013 vehicles amnesty scheme.

Several teams have been formed to conduct audit of vehicles at  various collectorates. A team comprising Deputy Director Rashid Munir and appraising officers Abdul Aziz, Rana  Mohammad Naseer and Zulfiqar Zaman scrutinized 5958 cases cleared from MCC Appraisement West. The team found that in 556 files duty and taxes were short realized. Therefore, MCC Appraisement West is required to recover Rs43.728 million.

Another team headed by Assistant Director Maryam Khalid and comprising deputy superintendents Arshad Mehmood, Muhammad Zaheer, inspector Muhammad Mumtaz conducted the audit of vehicles cleared from MCC Islamabad under the vehicles amnesty scheme.

The audit found that revenue to the tune of Rs0.845 million was short realized in 14 cases as they were allowed inadmissible exemption under SRO 172(I)/2013 as amended vide SRO 185(I)/2013.

According to FTO, considerably more generous tax and tariff concessions were granted to smuggled vehicles as compared to old and used vehicles imported by overseas Pakistanis. Courts also declared the amnesty as illegal while several officials were suspended and even dismissed.

The amnesty was misused rather abused grossly as even vehicles not present in the country were cleared without even examination.

In March  2013,  the  Revenue  Division  notified  amnesty  for smuggled vehicles vide SRO 172(I)/2013. Instead    of    packaging    guidelines    for    orderly    implementation simultaneously  while  notifying  the  amnesty,  the  FBR  haphazardly issued   piecemeal   instructions   on   different   occasions   during   the amnesty    period.    This    caused    a    lot    of    mismanagement    in implementation.

Failure of the FBR to package  the requisite guidelines for orderly implementation     of amnesty across the country prompted mismanagement and abuse of the amnesty and triggered a lot of public criticism.

The  overseas  Pakistanis  decried  discrimination.  The media highlighted the ravages of smuggling. The Competition Commission of Pakistan   (CCP)   sent   a   scathing   Policy   Note   to   the   Revenue Division/FBR  on  the  adverse  implications  of  amnesty  for  local  auto industry.

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