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Gift scheme car import pakistan 2015


gift scheme car import pakistan 2015

Another problem, he added, is that the custom levies on second-hand vehicles are not applied ad-valorem.
Islamabad: The government has decided to continue allowing expatriate Pakistanis to bring cars up to three years old on reduced customs duty under the new Automotive Development Policy 2015-20.
This fixed duty is calculated on less than half the current market price of those cars, based on the monetary values that were set in 2005, reasoned bexar goods promo code Iqbal.
Smuggled and non-duty paid motor vehicles are a very small part of illegal car imports and if the government is serious to counter the revenue loss it should stop the misuse of used cars import schemes.However, the age limit on the commercial import of special-purpose vehicles has been proposed to be restricted to five years under the new policy, a senior official of the Ministry of Industries and Production told Dawn on Wednesday.Under the old policy, the import of special-purpose vehicles meant for the construction industry including dumpers, water bowsers, sprinkler lorries, cement bulkers, prime movers and concrete mixers was allowed at zero customs duty.FBR relaxes duty payment condition on car imports.This free import, according to the official, has also slowed down the pace of graduation from two-axle trucks to modern, fuel-efficient vehicles, which is essential for the country, especially in view of the envisaged China-Pakistan Economic Corridor.Moreover, the Ministry of Commerce will define standing operating procedure (SOPs) under import policy order for used cars to prevent misuse of the facility.The court will conduct hearing on the case on January 23, the official added.These fixed duties are highly suppressed, causing loss of tax revenue to the government.The age limit will continue to be three years under the new policy as it has produced desired results and provided enough protection to local players, the official said.Used car imports amounted to 500 to 750 million in the last fiscal year, contributing around Rs60 to 70 billion in annual tax revenue to the national kitty.This also effectively subsidizes imported used cars, causing serious damage to the domestic auto industry.The import of used cars is allowed under three schemes as personal baggage (once in two years bringing the vehicle into the country on transfer of residence from another country, and sending a vehicle as a gift to a family member residing in Pakistan (once.It takes around 40 days for used cars to arrive in Pakistan from Japan.Local assemblers come under criticism for increasing prices and lack of competition leaves customers with no other option but to buy local cars.It is worth noting that national exchequer incurred a loss of approximately Rs43.728 million because of this amnesty scheme for smuggled motor vehicles as per FBR.


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