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 legalisation 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 legalised and would be allowed to move throughout the country. Once these 800 vehicles are legalised, 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 regularisation 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.