By Haq Nawaz Khan
Following the decision of the Apex Committee, the Khyber Pakhtunkhwa government has launched documentation and registration of non-duty paid or non-customs paid vehicles in the Malakand Swat region, and the merged tribal districts as it is suspected as one of the sources of terrorism financing in the country. There is no proper record or registration of the vehicles used in crimes and terrorist activities.
This is a huge task assigned to the provincial department of Excise, Taxation and Narcotics Control, Khyber Pakhtunkhwa to document this highly ignored unorganized auto sector in the Malakand Division comprising 8 districts, and the 7 merged districts. Even after the documentation of the vehicles by the Excise and Taxation department, they would not be allowed to be used outside the said districts.
Officials, privy to the development, told The WeNews this is not an amnesty scheme or collecting taxes and duties from the owners of the non-customs/duties paid vehicles, but just registration of the vehicles and allotting them local registration numbers. “This is a voluntary registration drive without using any force,” an Excise and Taxation official explained.
The drive to document the NCP vehicles is not as easy as seen because the vested interest groups resist it. The propaganda is being spread that the government intends to bring the auto sector into the Malakand Division and merge tribal districts into the tax net. However, this is baseless propaganda and the government has no such plan for the movement.
In Malakand Division, the Excise and Taxation department has documented 3102 vehicles since October 16 this year. In Upper, Lower South Waziristan and North Waziristan 2395 NCP vehicles have been registered in the last 7 months. In other merged tribal districts Khyber and Momand 1395 non customs paid vehicles have been documented during October 22 – November 2, this year.
According to the official reports, the Excise and Taxation has documented 6892 vehicles so far. Malakand Division and the merged tribal districts are tax/duty free zones and any such move is suspected to extend the tax net to those specified areas.
Due to the absence of any legal cover, the government is unable to enforce its decision. It was proposed in a high-level meeting recently to launch a crackdown on the undocumented NCP vehicles and confiscate them, but it was not approved as stiff resistance could be faced. The major reason for not taking strict action is the extension of relevant laws to the Malakand region and erstwhile tribal districts. The issue could have political backlash if force is being used.
In a high-level meeting of the Apex Committee in mid-September, the issue of profiling of the non-customs paid vehicles was discussed in detail. The meeting was attended by the Chief Minister of KP, Corps Commander 11 Corps, and senior officials of different departments. It was agreed in the meeting to kick off a voluntary documentation drive and complete it by the end of the current year or the start of next year.
There is data or authentic record of the NCP vehicles available with the government. This drive, if successful, could help collect official data. The NCP business is a source of smuggling and black money, as there is no record of the investment.
The security circles see the unorganized and unregistered NCP vehicles as a source of terrorism financing for the banned terrorist outfits. The banned Tehreek-e-Taliban Pakistan has also issued a statement against the profiling of the NCPs. On one hand to win the local support of the people of the respective areas, but on the other, to keep its source of income intact.
Law enforcement agencies are also facing challenges in tracing terrorists and criminals, using undocumented NCP vehicles. The status of the NCP vehicles will remain unchanged even after the documentation, but at least every vehicle will be properly documented with a registration number, engine number, chassis number, model and makeup, and owner details.
The government has been attempting to end this illegal business, and amnesty schemes were announced in the past, but it did not resolve the issue. The last tax amnesty scheme was offered in 2013 where thousands of vehicles were cleared after paying taxes and duties. But the NCP vehicles business flourished more. It is a long way for the NCP vehicles to reach Malakand region and the merged districts from Afghanistan via Balochistan.
According to the officials, it is difficult to estimate the actual numbers of the non-customs paid vehicles in the Malakanad and merged tribal regions. If the drive could go well with the cooperation of the people, then we could be in a position to say how many vehicles we have. This could be the first database for this unorganized sector.
Pakistan is facing serious economic challenges as most of its economy is undocumented and irregular. This weakness is providing opportunities to the black money hoarders, smugglers, and tax evaders that unfortunately are the major reasons for the financing of terrorist groups.
It will take time to regulate the undocumented areas, but it could be possible with a strong political will, backed by the people of Pakistan. The task is challenging but not impossible to complete.
