Last year the Government of Pakistan issued an SRO namely SRO 1067(1)/2017 and revised its import car policies. The authority basically strengthened baggage, gift and transfer of residence schemes through which people import cars from foreign countries. According to government officials, the amendment made under SRO 1067(1)/2017 was to curb the trade deficit of the country by limiting the import of used cars. At that time importers criticised and urged the government to take back the new policy. However, the government didn’t give any leverage to them.
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And now in recent developments, according to different local media outlets, Federal Board of Revenue has temporarily relaxed its policy for the import of cars under Personal baggage, Gift and Transfer of Residence scheme. According to their reports, the authority has exempted car imports between December 4, 2017, to January 9, 2018, from a specific condition which it imposed by issuing SRO 1067(1)/2017 and the condition is as follow:
“In case of import of vehicle under baggage, transfer of residence or gift schemes, the remittance for payment of duties and taxes should originate from the account of Pakistani national sending the vehicle from abroad.”
Furthermore, it is pertinent to mention here that the decision has come when car importers decided not to pick their cars from the port until government withdraw its policies, which it introduced in October last year. This action by importers created gridlock at the port. Additionally, it is also being reported in reference to a Customs official that the move has been made to clear the gridlock at the port as around 6000 cars had been stuck at the port for many weeks now.
As the news was a scoop it became viral; that is why we at PakWheels decided to decipher this news for our readers to filter out the ambiguity and to clear the matter. So, the question is did FBR ease its policy for duty payment condition on car imports?
Find out the explanation and our analysis on this matter in the video below:
