Government Tightens Procedures On Import Of Used Cars!

Used car import

To curb the misuse by commercial importers of Commerce Ministry’s schemes and to boost new investment in our auto industry, the government has decided to harden the procedures of importing used cars. Every year, around 30,000 used cars are imported to the country mostly from Japan. In addition to this, according to a report published in BR, more than three-year-old used cars are imported to the country using unofficial means and since Federal Board of Revenue (FBR) generates revenue on cars imported illegally, they continue to encourage the import of used cars commercially.

Moreover, the government has approved the Auto Development Policy (2016-21) without the consent of domestic players, and it will be valid from 1st of July this year. According to the new policy, Ministry of Commerce would be required to make Standard Operating Procedures (SOPs) for used cars to reduce the misuse of the system. According to policies of the State of Bank of Pakistan, the Overseas Pakistanis are allowed to import used cars as per the Appendix-E of the Import Policy Order 2013 which states that Pakistani nationals are entitled to import a vehicle either as personal baggage or gift or by using the transfer of residence scheme.

Also Read: Used Imported Car Sales Picking Up Pace – Local Carmakers Need To Bring New Models

The system mentioned above was introduced to ease out Pakistani nationals living overseas. This policy was aimed to make vehicles available to Pakistanis without the need of using Pakistan’s foreign exchange resources. However, this scheme was misemployed by commercial car importers in the country by misusing the passports of Pakistanis living abroad. Furthermore, State Bank of Pakistan stated, that the merchants transfer funds through illegal channels for vehicle payment which leaves an adverse impact on our economy.

To prevent the misuse of the policy, Ministry of Industries and Production has suggested a significant rise in fixed duty of used imported cars in their budget proposals.

 

Adan Ali

Adan is a Tribe Leader at Drive Tribe, who writes to share his passion for cars, culture and gadgetry through words. So far his writings and contributions have been able to make their way to media outlets like PakWheels and Dawn. Reach out to him by tweeting @adanali12

  • Guest

    “…more than three-year-old used cars are imported to the country using
    unofficial means and since Federal Board of Revenue (FBR) generates
    revenue on cars imported illegally, they continue to encourage the
    import of used cars commercially…”

    Kindly shed light on how one government institution can profit from the loss of another government institution. Also, is the treasury ultimately in net profit or net loss?

  • I agree and would like to add another question – How does the FBR generate revenue on illegally imported cars? Had the author said legal, I would’ve understood. Illegal would mean that the car would be declared as scrap when it was a fully functional car and the kickback would go in the relevant Customs / Tax Officers’ pockets.

  • Salman ahmed

    According to rules you cannot import a car of more then three years old . So hence it is illegal

  • Buddy read the question – How does FBR generate revenue on illegal imports. Simply stated, FBR can’t generate revenue on a illegal item – any revenue goes into the pockets of the officials who turn a blind eye. No customs, taxes nothing. If you want such cars take a trip to Chaman or Peshawar.

  • Zulfiqar Ali Soomro

    the statement contradicts itself.

  • INCOME TAX OFFICERS

    This is Pakistan. Here No Law and Orders are followed. You can even import ATOMIC BOMB here. A highly CORRUPT STATE in the world.

  • muhammad saeed ch

    if u not like this country or not feel comfortable to live here then please leave this respectable country & honor able nation ,Pakistanis has no need infirmity complex people

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