FBR approves new framework for disposal of confiscated vehicles

FBR's revised policy seeks to eliminate such practices and enforce court decisions more efficiently
An undated image of cars. — Canva

An undated image of cars. — Canva 

The Federal Board of Revenue (FBR) has approved a new framework for handling and disposing of confiscated vehicles which seeks to end the misuse of confiscated vehicles, close the loopholes in law, and ensure that future auctions are competitive and transparent.

This decision was made during a high-level meeting chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar. After reviewing various laws and administrative problems associated with tampered or seized vehicles, it was agreed upon by participants that a sub-committee be formed that drafts a comprehensive policy.

The effort has now resulted in the approval of a new Customs General Order (CGO), which will guide future implementation.

Officials indicated that the new system will help curtail irregularities with more auctions and revenues to the state and enhance trust in customs.

Dar stressed that transparent disposal would enhance accountability and compliance with judicial decisions.

Moreover, tax specialists at the meeting suggested that in the past, a significant number of confiscated vehicles were retained by high-level officials without being auctioned or returned to the rightful owners, which a revised policy seeks to address and create better compliance with the courts.

The session also revisited recommendations from the Federal Tax Ombudsman (FTO), who had earlier urged FBR to involve the Economic Coordination Committee (ECC) in structured disposal. 

Furthermore, the FTO further suggested that tampered chassis vehicles be donated to registered charitable organisations for social welfare projects.