Will the government grant concession on the import of vintage and classic cars?
The government of Pakistan in its recent budget 2018-19 has proposed concessionary import of vintage or classic cars and jeeps at fixed duty/taxes of US$ 5,000– in our understanding, it means that the tax will not vary according to the engine capacity of the car but will be imported at a fixed duty rate. The recommended step is first of its kind initiative for the import of vintage cars and jeeps into the country. According to our research, before this proposal, there was no set structure of duty or tax through which one can import classic or vintage cars into Pakistan.
At the Competition Commision of Pakistan’s open hearing on automobile sector, where PakWheels.com was also present, this issue was raised. One of the participant at the event shed light on the matter and appealed before CCP’s panel that government should take necessary steps and set rules of the structure so that the people who love vintage cars and are eager in revamping them should be catered to.
It is indeed a good step by the government; this will create a whole new industry in Pakistan. People can import the vintage or classic cars and jeeps into the country, revamp them and then sell in the international market as labor in Pakistan is cheap one can get great profit as well.
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As of now few people are revamping vintage cars from scratch and this proposal is surely a treat for them. However, there is still a question and that is whether the government will make a new category for vintage cars or not? Currently, they are being imported under the used car schemes. Moreover, it is also not cleared from the government side that what according to them is a limit of vintage or classic car – a 25-year-old and 30-year old, etc.
Moving onward, vintage car lovers for many years now have demanded that government should exempt customs duty on spare parts of vintage cars altogether. However, in the recent budget, there is nothing mentioned regarding the change in customs duty on parts of classic cars.
We contacted an industry analyst to know more about this development. And according to the analyst, it’s highly probable that this proposal by the government will pass from the National Assembly. Moreover, he also asserted that things would become crystal clear when it passed from the National Assembly. The concerns regarding, what the government considers as vintage cars and should they be placed into the whole new category, will be addressed, he added. But it is disappointing that the government didn’t mention anything about the import of spare parts of vintage cars, which are priced at high rates at the moment, the analyst further said.
Until then, stay tuned to PakWheels.com for latest updates.
