ISLAMABAD (December 19 2003): The Central Board of Revenue (CBR) has withdrawn SRO of 1991 regarding the “Yellow Cab Scheme” taking away condition of the Communication Ministry's no objection certificate (NOC) involvement during transfer of such vehicles in the name of person to whom it is sold by the initial owners.
A senior government official told Business Recorder here on Thursday that the owners of yellow cabs could now use these vehicles for private purposes, as the relevant SRO was no more operative.
The Central Board of Revenue (CBR) on Thursday issued a directive to all the collectors of Customs to implement para-6 of the summary moved by the Communication Ministry to the Economic Co-ordination Committee (ECC) of the Cabinet regarding withdrawal of the condition of NOC for vehicles given under the Yellow Cab Scheme to unemployed youths.
The CBR has asked the collectors to take necessary action as per para-6 of the summary approved by the Cabinet. It reads: “Since the vehicles imported under the “Yellow Cab Scheme” eleven years ago have outlived their utility and have also become uneconomical for use as public transport, it is, therefore, proposed that the SRO of October 14, 1991 be withdrawn and the vehicles imported under the Yellow Cab Scheme be made transferable in the name of their present owner without involving NOC from the Communication Ministry.”
In 1998, the CBR issued a directive to the collectors of Customs that the owners of yellow cabs, who wanted to get out of the scheme, could do so after payment of duties and taxes on depreciated value and discharge their bank liabilities.
According to the previous directive, the yellow cabs seized should be released on the payment of Customs duty and other taxes on a depreciated value of 50 percent. Depreciation for such vehicles would be computed in accordance with the relevant Customs General Order (CGO) irrespective of the engine capacity.
Whereas, after release of confiscated vehicle after payment of duties and taxes, the owner would be at liberty to use cab as he wished, provided he had cleared the bank liabilities.
Similarly, in case the banks auctioned the vehicles without the payment of duties and taxes, the demands should be raised to recover this amount from the respective banks, the instructions added.