Vehicles Amnesty Scheme: Audit team finds short-realization of Rs123.384 million by MCC Quetta

KARACHI: Post Clearance Audit – Customs has found that a sum of RS123.384 million needs to be recovered as it was short-realized on 1510 vehicles which were cleared under Smuggled Vehicles Amnesty Scheme 2013 through MCC Quetta.

 A total number of 17,674 files were presented to the audit team, out of which assessment made in 16,164 files was found in order. In 1510 files duty and taxes have been short realized as the vehicles were assessed at a value lower than that available as the indicative guidelines/slabs provided by FBR for assessment. Hence, an amount of Rs123.384 million needs to be recovered.

Director Gul Rehman formed an audit team to conduct audit of the assessment of all vehicles cleared through MCC, Quetta under Smuggled Vehicles Amnesty Scheme, 2013. The team comprised of Assistant Director Sajid Ali Baloch and Inspectors Muhammad Zubair Awan, Muhammad Essa Khan and Abdul Qayyum.

Federal Government had directed that smuggled or non-duty paid motor vehicles, having non-tampered engine or chassis numbers, which have been seized or voluntarily presented to Customs on or before March 31, 2013, shall be allowed release on payment of redemption fine along with duty and taxes.

Accordingly, the cases of vehicles covered under these Notifications were processed at different Collectorates/Customs Stations and the vehicles were allowed release as per terms and conditions provided under these Notifications. However, in the light of the Report of the Federal Tax Ombudsman on Smuggled Vehicles Amnesty Scheme, 2013 issued on February 14, 2014, Directorate General of Post Clearance Audit was assigned with the task of auditing assessments of all amnesty vehicles in order to quantify revenue loss due to under-assessment and non-compliance with prescribed or required formalities by each Collectorate.

Duty and taxes assessed by the different custom stations of MCC, Quetta were cross checked with the duty/taxes paid by the owner of respective vehicles as shown in the Duty Bill available in each files. In addition to that, information was minutely checked in respect of each vehicle: (i) chassis number, (ii) year of manufacturing, (iii) engine capacity. Further, the aspect of depreciation was also re-calculated as per year wise tax assessment sheet for various models/capacity of vehicles available at FBR website.

The Audit team found short-realization of Rs123.384 million on 1510 vehicles cleared through MCC Quetta.

Chief Collector Enforcement South Zahid Khokhar and Collector Quretta Saeed Jadoon ahve devised a plan to effect this recovery and notices would be issued to the owners of these vehicles and in the second phase vehciles may also be confiscated.

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