MULTAN: The Federal Tax Ombudsman (FTO) has recommended that the Economic Coordination Committee (ECC) make an urgent decision regarding the disposal of confiscated ambulances and other suitable vehicles with tampered chassis numbers. These vehicles should be allocated to philanthropic organizations registered as non-profit organizations (NPOs).
According to data from the Federal Board of Revenue (FBR), 4,402 lots of confiscated goods remain un-disposed or pending auction. Of these, 552 lots are awaiting policy decisions from the FBR. Additionally, 182 lots are under litigation across various legal and quasi-judicial forums. The remaining lots have not received satisfactory bids due to unreasonably high reserve prices, which have not been adjusted downward despite being offered at auction 54 times.
The congestion of auctionable goods and vehicles with tampered chassis numbers at port areas and Customs warehouses is resulting in significant financial losses to the state and the federal exchequer. This issue has led to a clogging of storage facilities, further exacerbating the problem.
This situation emerged from an investigation initiated under the Federal Tax Ombudsman Ordinance, 2000. The investigation focused on the large quantities of confiscated goods and vehicles accumulating at Customs formations nationwide, involving stuck revenue amounting to billions of rupees.
Despite the Customs Laws, Rules, Customs General Orders (CGOs), and other instructions mandating the swift disposal and auction of these goods, Customs authorities have failed to comply. The neglect and inefficiency of the Customs authorities have been highlighted as the primary reasons for the delays.
The FTO noted that a previous ECC decision from 2006, formalized in CGO 05/2018, did not address the disposal of confiscated ambulances and vehicles with tampered chassis numbers to NPOs as defined by section 2(36) of the Income Tax Ordinance, 2001. This oversight necessitates a revision of the ECC’s policies and FBR’s procedures.
The FTO has urged the FBR to direct the Member Customs (Policy) to resolve the pending policy issues and expedite the disposal of 552 auctionable lots within 45 days. Moreover, the FBR Member Customs (Ops) and Director General I&I Customs have been advised to instruct relevant Collectors and Directors to clear the backlog of auctionable goods and vehicles within 60 days. Additionally, the FBR Member Customs (Legal) is recommended to ensure early hearings and decisions on cases pending before various judicial and quasi-judicial forums within 30 days, facilitating the quick disposal of confiscated goods.
The FTO’s recommendations aim to address the systemic inefficiencies within the Customs Department and FBR, ensuring compliance with the law and reducing the financial losses incurred by the state due to prolonged delays in auctioning confiscated goods and vehicles.
