KP Proposes Plan to Bring Non-Customs Paid Vehicles into Tax Net

To address the issue of non-customs paid (NCP) vehicles in Khyber Pakhtunkhwa, the Excise and Taxation Department has proposed a plan targeting Malakand Division and the merged tribal districts, where NCP vehicles are most prevalent.

Key Points of the Proposal:

• The department has gathered data on over 110,000 NCP vehicles in these areas, thanks to the cooperation of Malakand Levies and the police. This information, including vehicle owners’ details, chassis numbers, and registration numbers, has been entered into the department’s database. The Federal Board of Revenue (FBR) will use this data to calculate the appropriate customs duties based on engine capacity.
• While the department has proposed specific customs duties, the final decision will be made by the FBR. The official stressed that this might be the last chance for NCP vehicle owners to register their vehicles by paying the required duties. Vehicles that remain unregistered could face confiscation.

Challenges and Past Efforts:

• The KP Excise Department briefed the provincial cabinet on the challenges posed by NCP vehicles, which evade taxes, result in significant revenue losses, distort the market, and contribute to road safety issues. Previous attempts to address the problem have seen the number of NCP vehicles grow, from 99,334 in 2017-18 to over 102,000 by December 2023.

Current Status and Future Plans:

• PakWheels contacted the KP Excise and Taxation Department for more details. An official confirmed that the plan is still a proposal and that data collection is ongoing. The program is in its early stages and will take time to finalize.
• The department has suggested that one vehicle per CNIC should be regularized and proposed a bulk registration option for dealers, with an additional 10% duty for each vehicle. This plan aims to bring untaxed vehicles into compliance and eliminate the concept of NCP vehicles altogether.