Last week, we shared news about the proposal to legalize non-custom-paid (NCP) cars in Khyber Pakhtunkhwa. According to media reports, the province’s Excise and Taxation Department proposed the plan, primarily focused on the Malakand Division and the merged tribal districts, where the presence of NCP vehicles is particularly high.
KP and NCP Cars
The department had collected data on over 110,000 NCP vehicles in these areas, with the assistance of Malakand Levies and the police. This data, which included vehicle owners’ details, chassis numbers, and registration numbers, had been fed into the department’s database. Furthermore, the department recently briefed the provincial cabinet on this issue, highlighting the significant challenges posed by the increasing number of NCP vehicles.
These vehicles not only evade taxes, causing substantial revenue losses for the government but also distort the market for legitimate vehicles. This undermines fair competition within the automotive industry, a key concern that needs to be addressed.
Past attempts to address this issue have shown that the problem is growing. For instance, a profiling campaign in 2017-18 identified 99,334 NCP vehicles in Malakand Division. By December 2023, that number had increased to over 102,000 in the division and tribal areas. However, we did contact the KP excise official, who clearly stated that the FBR will make the final decision because it is just a proposal right now, and nothing has been finalized.
FBR Statement
In a tweet, the Federal Board of Revenue (FBR) clearly rejected any such development. “FBR categorically denies rumors circulating on social media regarding a purported upcoming amnesty scheme for regularising the smuggled vehicles. It is clarified that no such scheme is under consideration by the federal government at this time,” the department tweeted, adding that the general public is therefore advised not to believe any such misinformation circulating on social media or in any other unverified sources.
In conclusion, it’s crucial to remember that there is no such scheme underway to regularize NCP vehicles in KP. We must wait for an official confirmation from FBR before drawing any conclusions.
