Karachi, January 16, 2024 – In a bid to curb the menace of smuggling, the Federal Board of Revenue (FBR) has announced a series of harsh penalties for individuals involved in the illegal transportation of goods, including essential commodities, into or out of Pakistan.
The updated Customs Act, 1969, applicable for the tax year 2024, outlines these stringent measures aimed at deterring smuggling activities and safeguarding the nation’s economic interests.
According to the provisions:
If the value of the smuggled goods falls between PKR 500,001 to 3,000,000 (both inclusive), perpetrators will face a penalty not exceeding the value of the goods. In addition, upon conviction by a Special Judge, they may be subjected to imprisonment for a term not exceeding two years.
For goods valued between PKR 3,000,001 to 5,000,000 (both inclusive), the penalty may reach up to two times the value of the goods, with imprisonment not exceeding three years. The minimum sentence of imprisonment, in this case, is set at two years.
In cases where the value of the smuggled goods ranges from PKR 5,000,001 to 7,500,000 (both inclusive), the penalty can be as high as three times the value of the goods. Conviction by a Special Judge may lead to imprisonment for a term not exceeding five years, with a minimum sentence of two and a half years.
For goods valued between PKR 7,500,001 to 10,000,000 (both inclusive), the penalty may go up to four times the value of the goods, accompanied by imprisonment not exceeding ten years. The minimum sentence of imprisonment in this category is set at three years.
In the case of goods exceeding PKR 10,000,000 in value, perpetrators face a penalty not exceeding five times the value of the goods, and imprisonment may extend to a term not exceeding fourteen years. A minimum sentence of five years is mandated, and the individual’s moveable and immoveable assets and property are also liable to forfeiture in accordance with section 187 of the Customs Act, 1969.
Moreover, the Federal Government reserves the right to notify goods in the official Gazette, for which the sentence of imprisonment shall not be less than five years, and the whole or any part of the individual’s property shall also be subject to forfeiture.
These stringent measures underscore the government’s commitment to eradicating smuggling and protecting the country’s economic interests. The FBR’s move is anticipated to act as a robust deterrent against illicit trade and strengthen the enforcement of anti-smuggling laws in Pakistan.
