ISLAMABAD, March 2: The Central Board of Revenue on Thursday allowed clearance of smuggled vehicles (non-duty paid) on payment of 30 per cent redemption fine of the value, in addition to duty and taxes.

The CBR has also withdrawn the powers of customs officials in regard to seizure of the smuggled vehicles by amending the notification SRO574 of 2005.

Tax officials hope to generate maximum revenue from this clearance to increase the overall customs revenue, as it showed a declining trend during the current fiscal year.

“The facility is not a general amnesty scheme that could benefit common people at large. It would only benefit certain quarters of people who would clear over 1,600cc vehicles and those in the custody of customs department under this facility,” sources said. Under the amended notification, the CBR accorded powers to the adjudication officers of customs to release the smuggled vehicles against redemption fine along with duty and taxes.

At present smuggled vehicles, which were seized by the customs authorities, were out rightly confiscated. The owners were not given any option to get the vehicles released even on payment of duty and taxes.

“This causes hardship to the bona fide buyers and the vehicles also remain in custody until they are finally sold through auction after final decision of the cases. This also results in deterioration in conditions/ prices of the vehicles,” they added.

An official announcement said that the decision would facilitate the bona fide owners of the vehicles, which had already been seized by the customs and were in the process of adjudication. This will also provide an opportunity to the owners to get their vehicles released and registered legally.

Moreover, a large number of cases regarding the confiscation of vehicles were pending before tribunals and other appellate forums. The scheme would be applicable to the existing cases in tribunals and courts and not to tempered vehicles.

The decision will reduce litigation at the level of adjudication collectorates/tribunals and will increase revenue collection in the remaining four months of the current financial year.

The collectorates of Peshawar and Quetta have already sent detailed reports to the CBR on different categories of vehicles brought into Pakistan through the porous border.