Calculation of duty on used car imports revised: Prices of imported cars set to increase
Federal Board of Revenue has revised the calculation of duties imposed on used cars. No changes have been implemented on the duty and tax imposed on used car imports, neither is there any change in the age of old and used car imports.
In simple words, five years old cars can still be imported on the previous duties and taxes however, calculation of date on the import of old and used vehicles is revised.
Previously, depreciation was calculated at the rate of 2 percent per month on old and used imported vehicles for each completed month which was calculated from the date of first registration abroad up to the date of entry into Pakistan, now though, the 2 percent depreciation will be calculated on each completed month from the first day of January of the year subsequent to the year of manufacture till the date of shipment as per bill of landing.
Roughly translated, cars of age five years old can be imported however depreciation of two percent per month shall be applied on the year, following the year of the car’s manufacture. For example; If a 2005 model car is imported, than depreciation charges will be applied on it from 2006 unlike previously, where depreciation charges were independent of model year and were applied from the date of registration abroad.
H M Shahzad, a leading dealer of cars said that the prices of used imported cars are set to increase by Rs 60,000 to 260,000 on different models after the government slashed depreciation allowance by 12 percent to 48 percent on Friday.
Speaking further that the government has increased the duties on the imported cars to stop the import of cheap cars in the country for customers.
He added that the increase in duty will reflect on price hike on cars models from 600cc to 1000cc by Rs 26,000 whereas different brands of 1200cc to 1800cc will see the increase of Rs 260,000 in prices.
This added cost will be transferred to the consumers on not only the cars which will soon be imported and cleared from the port on this new calculation criteria, but dealers and importers will take advantage and increase the prices on cars which weren’t imported under this calculation criteria as well.
I don't get it wht benefit does the Govt get by making stupid policies. Now and then, seems like they got nothing important to do.
This policy is made to reduce the demand of Japanese cars and so the people will be forced to buy local assembled cars which had a gr8 loss because of Japanese cars
Because this a Govt of burgulers, dacoits, ransom mafia and so on. So what else we can expect from them.
tell me how much duties for 2500cc 2002 model.
its just a money making policy before going by Mr. Preisident
Our officials are not smart enough to come out with a proper policy.
Its all big money making.
Hypocrite importers and dealers are making fool of buyers and directly responsible for this price hiking in disguise of Government Policies… Used Imported cars should have to be sold at competitive prices but all these jugglers have snatched this last hope from middle class and deprived them of from this luxury…
u cant import car which is older than 5 yrs
Is there the possibility for a foreigner, stably resident in Your country, to import his own car without paying duty and only for personal use?
Some one can answer me?
Thank You
Why, Fabio, do you still have some money to buy a new car in this country? Interesting…
No, but what I can pay in our country for a good car, it's nothing compared to what they are asking me here me.
mooolto picturesque! ciao come stai?
Bene grazie. Ti scrivo in privato …..
This policy must be changed because it makes so much confusion for importers and hard to make quick decision.
now you cant import car older then 3 years
The govt should also make policy on the matter of Public Transport as that will make some difference.
yeah you can why not
its 5 years instead of 3
totally agree with you, me too sometimes thinking alot that why we have 5 years limitation on import of vehicles and there is alot of 70's, 80's vehicles running on our roads. govt should review and change the policy and give a subsidy to taxi owner for removing these sort of scrappy vehicles.
they collect heavy amount from the manufacturers in whom assembling in pakistan i.e; deewan motors, indus etc etc … if govt just put out the 5 years limitation and increase it to 10 years then i don't think so k we will see any 70's & 80's taxi cars on our roads atleast
1000 cc
Customs duty: 55%
Import Sales tax 19%
Capital Value Tax: 6.25%
1300 to 1500 cc
Customs duty: 60%
Import Sales tax 19%
Capital Value Tax: 6.25%
1501 to 1800 cc
Customs duty: 75%
Import Sales tax 19%
Capital Value Tax: 6.25%
1801 to 3000 cc
Customs duty: 100% (plus 50% additional regulatory duty)
Import Sales tax 19%
Capital Value Tax: 6.25%
Over 3000 CC
Customs duty: 100% (plus additional 50% regulatory duty)
Import Sales tax 19%
Capital Value Tax: 6.25%
All figures are for approximation actual values vary with respect to OEM value of vehicle and net CIF price declared on invoice.
@ Fabio: Sorry for a late reply, and by now, you might already have sorted this issue out, however, the rule position on this mater is that you can get a vehicle imported, if you are settled in Pakistan and have a nationality of some other country. You wont have to pay any duty on such import, except for the transportation charges. However, you can only import a vehicle from the country of your nationality, not any other country. Hope this was useful.
Regards
It will rasie the prices of the cars at home it is not good for the people who wants to have used cars.The link below has the much information regarding the used cars.
http://www.houstondirectauto.com
Yes there is a policy for foreigners who can import vehicles into Pakistan for a period of 2 years while in transit or short stay as tourists . Those 2 years can be extended to another 2 years after expiration date. This way you do not pay any duty and keep your car but at the end you have to get it out of Pak or pay its duty and sell it localy
It will rasie the prices of used cars but also benefit for the local industry by the govt that is not good for the consumer
I agree