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Vehicles smuggling with loopholes of Excise, EDB, and FBR

Karachi – The survival of Auto Assembler/ manufacturers of Pakistan are at stake within current business scenario of the country where smuggling is made easy by facilitators from Government authorities at Borders.

Informed sources disclosed to this scribe that on account of Sales Tax more than Rs 500 million a month could be further recovered from Motorcycles/ Car/ Auto Sector if smuggling on the borders is properly controlled by law enforcing agencies.

According to details Quetta and Chaman are the hub of smuggled vehicles, especially Japanese assembled like; Toyota Land Cruiser, Toyota Prado, Toyota Premio, Toyota Vitz, Toyota Aqua, Toyota Axio, Toyota Passo and Toyota Corolla X etc.  

The gangs working at Chaman and Quetta getting these smuggled vehicles through Afghanistan and Iran are selling in their respective areas. Some of the extra sharp people are getting these vehicles with the help of Customs Authorities of Pakistan. They are fixing them in auction at low rate because these vehicles are handed over to Custom Authorities without Engine and Gear Box which reduces price of the Vehicle.

The main feature of Auction is our country’s bureaucracy that sells Auction vehicles without Engine number which allow the gangs to have corruption of “Aik ka char” means to get verified from Customs and get registered four vehicle with same documents and same Chassis number but engine of four vehicles are changed.

This formula is also applied in Motorcycle Industry where small manufacturers are issuing same invoice number for different engine and chassis numbers in various provinces of the country. Some of the companies are manufacturing/ assembling motorcycles of any given brand and selling to Quetta and Chaman for illegal exports to Afghanistan.

Suggestions

To meet these challenges the sources suggested to taking some vital remedies for controlling the duplication in registration of vehicles in every province. These measures are meant for enhancing government revenue and declaring the actual production of vehicles in Pakistan. This will help stopping leakages of revenue collection too.

  1. They urged to connect all Provincial Excise and Taxation Departments for only matching the Data but no duplicate registration.
  2. Invoices of Manufacturer should be compulsory for registration.
  3. All Excise and Taxation departments should place column of Manufacturer Sales Tax Invoices number for registration.
  4. The Engineering Development Board (EDB) should collect Data of Engine & Chassis numbers of all vehicles with Sales Tax Invoice Number. (Currently there is no one looking into this seriously).
  5. All Excise Departments may be allowed to access the Sales Data of Auto Sector (Annex-C) of Sales Tax Return filed with Federal Board of Revenue for verification of sales made by manufacturer of this motorcycle/ car etc.
  6. All the Auction Vehicles must be sold with Engine & Chassis numbers not with Chassis number only.

The above measures adopted would certainly take advantage of technology for saving revenue in shape of Sales Tax of more than a minimum of Rs 500 million a month from motorcycles/Car/Auto Sector, the sources claimed.

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