ISLAMABAD – The federal government is weighing major revisions to schemes related to import of used cars by Pakistani citizens.
As per existing laws, the Federal Board of Revenue (FBR) allows Pakistani nationals residing abroad including dual nationals to import old and used vehicles into Pakistan under three different schemes.
The schemes include Personal Baggage, Gift Scheme and Transfer of Residence for import of vehicles. FBR said cars not older than three years can be imported under these schemes.
What the government is planning?
Reports suggest that the potential revisions include the termination of the Personal Baggage Scheme and tightening the laws related to the Transfer of Residence and Gift Schemes. The move aims at curbing misuse.
The Ministry of Commerce has submitted a summary to the Cabinet’s Economic Coordination Committee (ECC) outlining these proposals. The suggested changes are designed to address concerns about the improper use of these schemes, with a focus on preventing loopholes and ensuring that only eligible individuals benefit from the import process.
The ECC will make the final decision on these proposals, determining whether the reforms will be implemented to modify Pakistan’s used car import regulations.
Tax on Import of 1000cc Car under Transfer of Residence
An overseas Pakistan, who lived 700 days during the past three years in abroad country, can bring a vehicle of their choice to Pakistan under transfer of residence scheme.
For this scheme, the applicant files Goods Declaration under section 79 of the Customs Act, 1969 along with other documents such as purchase receipt, attested copy of passport and Bill of Lading.
FBR charges $6,000 in wake of duty and taxes on a vehicle with engine capacity of 1000cc.
Depreciation in duties and taxes at the rate of 1% per month is admissible according to the age of the vehicle, it said.
