IHC declares amnesty scheme for smuggled vehicles illegal
ISLAMABAD: The Islamabad High Court on Wednesday declared the amnesty scheme introduced by the previous government for smuggled vehicles as illegal and ordered the Federal Board of Revenue (FBR) to confiscate 50,000 smuggled vehicles.
The court also ordered the FBR to announce the auction of vehicles that were imported without paying normal government taxes. A one-member bench of the IHC comprising Justice Shoukat Aziz Siddiqui resumed hearing of a plea filed by Khawaja Saad Salim, seeking nullification of government's amnesty scheme that legalised vehicles that were smuggled into the country after paying nominal taxes.
Syed Jabed Akbar, counsel for the petitioner, apprised the bench that the FBR had begun the amnesty scheme for registration of smuggled vehicles through an SRO on March 5 this year, and it was aimed at avoiding the normal taxes and duties on import of automobiles. The scheme, he said, has caused losses of billions of rupees to the national exchequer at the cost of the taxpayers and citizens of the country, including the petitioner.
Akbar argued that the continuation of the amnesty scheme may result in creation of a black market for automobile vehicles in the country on permanent basis. This black market, he warned, would act as a parallel market of automobile vehicles and will greatly damage the lawfully existing market. He said the SRO is mala fide and has the illegitimate aim of smuggling the motor vehicles which cannot be brought to the country through normal channels or if brought through the said normal channels would not yield the profit earned through concessions allowed by the said SRO.
Akbar contended that such schemes are intended to be misused and a number of officers of the respondents have hatched a concerted scheme with those who are involved in business of smuggling vehicles, but the authorities responsible of the respondents have miserably failed to prevent such schemes. "The amnesty scheme is a glaring example of one of the corrupt and illegal acts done by the former FBR chairman, Ali Arshad Hakeem, to benefit his political masters, in last days of the tenure of the government," he alleged.
The counsel argued that the amnesty scheme is a classic case of a public authority acting "absurdly, irrationally and without application of its mind" thereby making the outcome grossly unreasonable and therefore illegal. He noted that the Competition Commission of Pakistan in its Policy Note on March 14, 2013 had recommended to the respondents that the amnesty scheme may be withdrawn.
ISLAMABAD: The Islamabad High Court on Wednesday declared the amnesty scheme introduced by the previous government for smuggled vehicles as illegal and ordered the Federal Board of Revenue (FBR) to confiscate 50,000 smuggled vehicles.
The court also ordered the FBR to announce the auction of vehicles that were imported without paying normal government taxes. A one-member bench of the IHC comprising Justice Shoukat Aziz Siddiqui resumed hearing of a plea filed by Khawaja Saad Salim, seeking nullification of government's amnesty scheme that legalised vehicles that were smuggled into the country after paying nominal taxes.
Syed Jabed Akbar, counsel for the petitioner, apprised the bench that the FBR had begun the amnesty scheme for registration of smuggled vehicles through an SRO on March 5 this year, and it was aimed at avoiding the normal taxes and duties on import of automobiles. The scheme, he said, has caused losses of billions of rupees to the national exchequer at the cost of the taxpayers and citizens of the country, including the petitioner.
Akbar argued that the continuation of the amnesty scheme may result in creation of a black market for automobile vehicles in the country on permanent basis. This black market, he warned, would act as a parallel market of automobile vehicles and will greatly damage the lawfully existing market. He said the SRO is mala fide and has the illegitimate aim of smuggling the motor vehicles which cannot be brought to the country through normal channels or if brought through the said normal channels would not yield the profit earned through concessions allowed by the said SRO.
Akbar contended that such schemes are intended to be misused and a number of officers of the respondents have hatched a concerted scheme with those who are involved in business of smuggling vehicles, but the authorities responsible of the respondents have miserably failed to prevent such schemes. "The amnesty scheme is a glaring example of one of the corrupt and illegal acts done by the former FBR chairman, Ali Arshad Hakeem, to benefit his political masters, in last days of the tenure of the government," he alleged.
The counsel argued that the amnesty scheme is a classic case of a public authority acting "absurdly, irrationally and without application of its mind" thereby making the outcome grossly unreasonable and therefore illegal. He noted that the Competition Commission of Pakistan in its Policy Note on March 14, 2013 had recommended to the respondents that the amnesty scheme may be withdrawn.