The Federal Board of Revenue is likely to allow Collectors of Customs to dispose of depleted vehicles through scrapping and sell the scrap through open auction. Sources told Business Recorder here on Thursday that FBR has received requests from certain Model Customs Collectorates for disposal of tampered confiscated vehicles through scraping and auction.

In this regard, the FBR has decided to obtain viewpoint of the Collectors of Customs to check whether such procedure of scrapping of tampered vehicles has been followed in the past. Taking into account the past practice, the FBR will take final decision to auction all such scrap of tempered vehicles after scrapping.

Under customs rules and regulations, the tampered smuggled vehicles cannot be auctioned. The motor registration authorities (MRA) are part of the provincial excise and taxation departments. The MRA have refused to register the tampered vehicles. Thus, such vehicles cannot be publicly auctioned for the last 5-6 years. As the same cannot be auctioned, no public revenue could be recovered from seizure of such vehicles. Such vehicles have only been allowed to federal and provincial government departments for official use under a special procedure. Another option is to dispose off depleted vehicles through scrapping and later auction of scrap.

Copyright Business Recorder, 2012