FBR directed to speed up auction of stranded vehicles at Karachi port

Federal Tax Ombudsman (FTO) Mushtaq Ahmed Sukhera has directed FBR to accelerate the auction of a substantial number of non-cleared stranded vehicles at Karachi Port.

The stranded vehicles were imported in violation of SRO issued by the Ministry of Commerce.

The subject vehicles were imported under Personal Baggage, Transfer of Residence, or under Gift Schemes.

However, as per the Customs Act, if goods are not cleared from the port within twenty days of arrival, they should be removed from the port and sold in the auction.

Federal Tax Ombudsman’s Own Motion decision states that failure to timely arranging an auction of vehicles lying un-cleared prima facie is a systemic issue of maladministration, and it appears that FBR had failed to put in place a system whereby vehicles cleared from the port are not timely listed in the Auction Schedule.

Delay in the auction would make most of these vehicles unserviceable due to rusting of bodies, running down of tires and batteries, pilferage of parts, etc., creating congestion at Ports.

Back on December 23^rd, the Federal Board of Revenue (FBR) imposed additional taxes on the selling of new cars within 90 days of purchase.

FBR said that the government has decided to impose close to Rs200, 000 additional withholding tax on the purchase of new cars.

For 600 to 1000cc cars, there will be an additional WHT of Rs50, 000, while for 2000cc cars there will be Rs100, 000 tax. While WHT of Rs 200,000 will be charged on any car above 2000cc.

FBR said that the new tax imposed to control ‘On Money’ practice and to meet the tax target set for the FBR by the government. The tax has already been approved by the federal cabinet.

The tax will come into effect from January 1, 2021, till June 30, 2021.