Pakistan Industrial and Traders Association Front terms amnesty scheme for car smugglers and tax evaders as anti-industry step

Lahore, March 18, 2013 (PPI-OT): Pakistan Industrial and Traders Association Front (PIAF) has termed the amnesty scheme for car smugglers and tax evaders as an anti-industry step and any such permission would detrimental to the local industry.

In a statement issued here, the PIAF Chairman Malik Tahir Javaid urged the Chairman Federal Board of Revenue to discourage any such decision as the smugglers of vehicles would get encouragement and would continue their criminal activities if a legal cover is given to smuggled vehicles.

The PIAF Chairman said that the business community understands that the smuggling is eating up much of the revenue therefore stringent measures should be taken against people found involved in such ant-social activities.

He said that smugglers of vehicles are the main beneficiaries of this proposed amnesty scheme, as luxury cars are being cleared by paying nominal fee under these schemes, and damaging the local auto sector, which provides direct/indirect employment to over 2.5 million persons. In the past, similar tax amnesty schemes have also been abused by tax evaders to launder their untaxed money through state patronage and, under all such amnesty schemes so far, government has failed to collect even a fraction of the black money.

Malik Tahir Javaid said that the local auto industry contributes over Rs 80 billion to the government treasury every year therefore foolproof strategy should be adopted to safeguard this one of the largest revenue generation sectors instead of eyeing a very small amount through the Amnesty Scheme.

He said that government only allows import of three-year-old used cars, but through this amnesty scheme, cars smuggled into Pakistan which are much older than three years can be legalised. How the FBR can ignore a serious crime like smuggling, he asked.

The PIAF Chairman said that an acute shortage of gas and electricity had already caused considerable damage to the trade and industry and if policies like Amnesty scheme to smuggled cars were given legal cover, no government would be able to put economy back on rails. Therefore, the PIAF Chief said, it would be wiser on the part of the government to take stakeholders into confidence before finalizing any such plans.

For more information, Contact:
Pakistan Industrial and Traders Associations Front
110/s Kot Lakhpat Industrial Estate
Lahore, Pakistan
Phone: (92) 42 5123522
Fax: (92) 42 5123522
Email: Info@piaf.pk

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