ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday declared clearance of stolen imported cars illegal under the Transfer of Residence, Baggage Scheme or Gift Scheme upon payment of redemption fine and taxes without following any legal provision.

The Federal Tax Ombudsman (FTO) urged the Customs authorities to stop such practice.

In an Own Motion Investigation, the FTO found that the decision taken in Customs Conference held at the then Central Board of Revenue (CBR) — now called the FBR — on August 2, 2006 was illegal. The FTO’s investigation committee also underlined that without following due legal procedures such decisions will promote illegal import of stolen vehicles and facilitate international criminal activities.

In this connection, FTO issued notices to the FBR. The FBR submitted in its report that the Customs collectorates in Sialkot and Peshawar had cleared six and three such stolen imported vehicles in 2007 and 2013-14, respectively.

The FTO also recommended the FBR to direct all collectorates of Customs and other concerned authorities to stop these illegal practices forthwith.

The Customs authorities were also directed that stolen imported vehicles either should have been returned to authorities of the country from where vehicles were stolen after receiving occurring expenses or these vehicles should have been confiscated and disposed of through public auction.

Published in Dawn, September 3rd, 2021