Import
Of
Vehicles
Taxpayer’s Facilitation Guide
Brochure- 013
August 2005
Revenue Division
Central Board of Revenue
Government of Pakistan
helpline@cbr.gov.pk
0800-00-227, 051-111-227-227
www.cbr.gov.pk
Our Vision
To be a modern, progressive, effective, autonomous and credible organization for optimizing revenue by providing quality service and promoting compliance with tax and related laws
Our Mission
Enhance the capability of the tax system to collect due taxes through application of modern techniques, providing taxpayer assistance and by creating a motivated, satisfied, dedicated and professional workforce
Our Values
Integrity
Professionalism
Teamwork
Courtesy
Fairness
Transparency
Responsiveness
For assistance and information on tax matters
Please contact our help line center through
Toll Free Telephone 0800-00-227
Telephone 051-111-227-227 or 051-111-227-228
Fax 051-9219215
E-mail helpline@cbr.gov.pk
or
Visit our tax facilitation center (located in all major cities) or any tax office
or
Visit our website at www.cbr.gov.pk
Revenue Division
Central Board of Revenue
Government of Pakistan
Brochure - 013
August 2005
Introduction
This brochure provides basic information for the benefit and use of taxpayers importing vehicle to understand their rights and obligations. The brochure explains in detail the conditions laid down in the Import Trade Policy and the structure of taxes under the Customs Act, 1969, Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Capital Value Tax on import of vehicles.
In this brochure some terms that are not familiar to taxpayers used for the first time are in italic bold and explained appropriately.
This brochure is to assist the taxpayers and reflects the legal position at the time of printing. In case of any conflict the legal provisions of the law shall always prevail over the contents of this brochure.
Comments and suggestions
We welcome your comments about this brochure and your suggestions for future editions.
You can e-mail us at membertpef@cbr.gov.pk
or
You can write to us at the following address:
Facilitation and Tax Education,
Central Board of Revenue,
Constitution Avenue,
Islamabad
IMPORT OF VEHICLES
The Trade Policy and Customs rules allow import of vehicles into Pakistan. Both new and used vehicles can be imported.
New vehicles can be imported freely by any one, under the generally applicable import procedures and requirements, like any other goods, on payment of applicable duty and taxes.
Used vehicles can only be imported by Pakistani Nationals under any of the
following three schemes (certain restrictions and conditions apply):
? Transfer of residence
? Gift
? Personal baggage
- The terms and conditions applicable for the import of vehicles under the above mentioned three schemes are tabled below:
Table – I
S. No. Requirements Applicable terms and conditions
Transfer of Residence Scheme Gift Scheme Personal Baggage Scheme
a.
Eligibility to import
Once in two years (700 days after the date of Bill of Entry / Goods Declaration of an earlier import under any of the three schemes)
b.
Type of vehicle that can be imported
Cars meant for transport of passengers, busses, vans, trucks & pickups including 4X4 vehicles
Agricultural tractors, bulldozers, laser land levelers and combined harvesters
Motor cycles and scooters
Cars meant for transport of passengers, busses, vans, trucks & pickups including 4X4 vehicles
Agricultural tractors, bulldozers, laser land levelers and combined harvesters
Cars meant for transport of passengers, busses, vans, trucks & pickups including 4X~4 vehicles
Agricultural tractors, bulldozers, laser land levelers and combined harvesters
c.
Model of the vehicle
No restriction
Not more than three years old model (year of manufacturer)
Not more than three years old model (year of manufacturer)
d.
Importer’s Period of stay out-side Pakistan
A minimum of 700 days stay out-side Pakistan during the immediately preceding three years from the date of application
A minimum of 700 days stay out-side Pakistan during the immediately preceding three years from the date of application
A minimum of 180 days stay out-side Pakistan during the immediately preceding seven months from the date of application
e.
Donee
(To whom the vehicle can be gifted)
Not applicable
A family member normally resident in Pakistan i.e.:
i. By parents to children (adult)
ii. By children (adult) to parents
iii. By either of the spouse
iv. By sister to sister or brother
v. By brother to brother or sister
Not applicable
f.
Procedure and Documents etc.
i. Application in prescribed form CR-TR
ii. Purchase receipt of the vehicle
iii. Bill of lading, if applicable, dated not later than 120 days from the arrival of the applicant
iv. Attested photo copy of the passport or Pakistan origin card (Original will be required at the time of clearance)
v. Valid driving license of the applicant
vi. Acknowledged copy of the declaration given to the customs on arrival by the applicant
i. Application in prescribed form CR-PB/G
ii. Purchase receipt of the vehicle
iii. Bill of lading showing name and address of the consignee
iv. Attested photo copy of the passport of Pakistan origin card of the donor
v. CNIC of the donee
vi. Gift undertaking (A certificate issued by the Pakistan Embassy, Consulate or Mission abroad in the prescribed form) not more than six months old
vii. Earning certificate (A certificate issued by the Pakistan Embassy, Consulate or Mission abroad in the prescribed form).
i. Application in prescribed form CR-PB/G
ii. Purchase receipt of the vehicle
iii. Bill of lading, if applicable, dated not later than 120 days from the arrival of the applicant
iv. Attested photo copy of the passport or Pakistan origin card (Original will be required at the time of clearance)
- Two different regimes are en-force for levy of the taxes payable on import of vehicles, under the above schemes. In this facilitation material, these are referred as Special Regime and Normal Regime.
? Special Regime covers:
? Certain specified used vehicles imported under the aforesaid three schemes.
? Normal Regime covers:
? New vehicles imported under the aforesaid three schemes;
? Used vehicles imported under the aforesaid three schemes but are not covered under the special regime; and
? Regular import of new vehicles
SPECIAL REGIME
- Under the “Special Regime” the taxes are levied on the basis of engine capacity, irrespective of the value of the vehicle and the optional or additional accessories. The accumulated amount of taxes, covering Custom Duty, Sales Tax, Income Tax and Capital Value Tax based on engine capacity, on import of the used vehicles meant for transport of passengers, are tabled below:
TABLE – II
Type of vehicle (Used vehicles meant for transport of passengers) Taxes
Upto 800 CC (Asian makes only)
US$ 4,000
Upto 800 CC (Other than Asian makes)
US$ 6,000
From 801 CC to 1000 CC
US$ 5,000
From 1001 CC to 1300 CC
US$ 10,000
From 1301 CC to 1500 CC
US$ 14,000
From 1501 CC to 1600 CC
US$ 17,000
From 1601 CC to 1800 CC excluding jeeps (Asian makes only)
US$ 21,000
For enquiries about applicable duties and taxes on vehicles other than those meant for transport of passengers, please contact CBR’s Help Line Center.
- The amount of taxes stated in Table – II, above, are reduced on account of depreciation in value of the vehicle at the rate of 2% for each completed month subject to a maximum of 50%.
Each completed month for depreciation is calculated from the date of first registration of the vehicle abroad to the date of entry into Pakistan.
The amount of taxes stated in Table – II above, are payable in US Dollars or equivalent amount in Pak Rupees converted at the rates prevailing at the time of making the payment of the taxes.
The following example would explain how the amount of taxes payable are determined under the above mentioned Special Regime:
Particulars Example-I
Transfer of Residence Example-II
Gift scheme Example-III
Personal baggage
Engine capacity
800 CC
(Asian Make) 1299 CC
(Any Make) 1700 CC
(Asian Make)
Date of registration abroad 1st Jan, 2003 1st July, 2004 1st May, 2005
Date of entry into Pakistan
20th July, 2005 20th July, 2005 20th July, 2005
Period between first registration and entry into Pakistan 30 Months and 20 days 12 Months and 20 days 02 Months and 20 days
Completed months 30 Months 12 Months 02 Months
Depreciation @ 2% per month 60% 24% 4%
Admissible depreciation (restricted to 50%) 50% 24% 4%
Full amount of taxes US $ 4,000 US $ 10,000 US $ 21,000
Reduction in taxes to the extent of the amount of depreciation US $ 2,000
(50% of US $ 4,000) US $ 2,400
(24% of US $ 10,000) US $
840
(4% of US $ 21,000)
Actual amount of taxes payable
US $ 2,000
US $ 7,600
US $ 20,160
NORMAL REGIME
Under the “Normal Regime” the taxes are levied on the basis of both engine capacity and value of the vehicle.
Normal regime covers the import of following categories of vehicles:
? New vehicles imported under the aforesaid three schemes;
? Used vehicles imported under the aforesaid three schemes but are not covered under the special regime; and
? Regular import of new vehicles.
- The rates of taxes under the normal regime on import of vehicles meant for transportation of passengers are tabled below:
TABLE – III
Type of vehicle (meant for transport of passengers) Customs
Duty on Value Assessed
(See Para 13 below) Sales
Tax on Duty paid value Income
Tax on Sales Tax paid value Capital
Value Tax on Sales Tax paid value
Used vehicles (Not covered under special regime)
From 1601 CC to 1800 CC (Other than Asian makes)
65.00%
15.00%
6.00%
7.50%
From 1601 CC to 1800 CC (Jeeps)
65.00%
15.00%
6.00%
7.50 %
From 1801 CC and above
75.00%
15.00%
6.00%
7.50 %
New Cars (Regular import or under aforesaid three schemes)
Upto 800 CC
50.00%
15.00%
6.00%
Nil %
From 801 CC to 1000 CC
50.00%
15.00%
6.00%
3.75 %
From 1001 CC to 1300 CC
50.00%
15.00%
6.00%
5.00 %
From 1301 CC to 1500 CC
50.00%
15.00%
6.00%
6.25 %
From 1501 CC to 1600 CC
65.00%
15.00%
6.00%
6.25 %
From 1601 CC to 1800 CC
65.00%
15.00%
6.00%
7.50 %
From 1801 CC and above
75.00%
15.00%
6.00%
7.50 %
- The value of a vehicle for the purposes of levy of above taxes is determined as under:
a. Export model - FOB value at the time of its manufacture, as certified by the manufacturer or its authorized local agent.
b. Domestic model - FOB value for similar export model certified by the manufacturer or its authorized agent, plus 5% of the C&F value.
c. In addition, the followings incidental charges and costs are added:
i. Value of optional / additional accessories;
ii. Local agent’s commission;
iii. Ocean/air freight calculated from the country where originally manufactured;
iv. Insurance in the country where manufactured or where first registered (in case of non-availability of insurance memo an amount equivalent to 1% of C&F value);
v. Landing charges at the rate of 1% of the CIF value;
vi. Other incidental charges;
- In case of used vehicles, the value determined as above, is reduced on account of depreciation of the vehicle at the rate of 2% for each completed month subject to a maximum of 50%.
Each completed month for depreciation is calculated from the date of first registration abroad of the vehicle to the date of entry into Pakistan.
- The following examples based on notional values, would explain how the value of a vehicle is determined for the purpose of levy of taxes, under the above-mentioned Normal Regime.
Particulars Example-I
Transfer of Residence Example-II
Gift Scheme OR
Regular Import Example-III
Gift Scheme Example-IV
Personal Baggage
Engine capacity and make
1800 CC
European make,
Used car
1600 CC
Any make,
New Car.
1800 CC
Any make,
Used car
2200 CC
Any make,
Used Car.
FOB value as certified by the manufacturer at the time of its manufacturer
US $ 1,000
US $ 1,000
US $ 1,000
US $ 1,000
Optional / additional accessories
US $ 100
US $ 100
US $ 100
US $ 100
Local agent’s commission
US $ 100
US $ 100
US $ 100
US $ 100
Freight from country originally manufactured e.g. (Osaka, Japan to Karachi- Pakistan)
US $ 100
US $ 100
US $ 100
US $ 100
Sub- total(C & F value)
US $ 1,300
US $ 1,300
US $ 1,300
US $ 1,300
Insurance @ 1% of C & F value
US $ 13
US $ 13
US $ 13
US $ 13
Sub- total (CI F value)
US $ 1,313
US $ 1,313
US $ 1,313
US $ 1,313
Landing charges @1% of CI F value
US $ 13
US $ 13
US $ 13
US $ 13
Other incidental charges, if any
US $ 74
US $ 74
US $ 74
US $ 74
Value assessed
US $ 1,400
US $ 1,400
US $ 1,400
US $ 1,400
Date of first Registration abroad
1st Feb, 2003
NA
1st Feb, 2004
20th April, 2005
Date of Entry in to Pakistan
20th July, 2005
NA
20th July, 2005
20th July, 2005
Period between first registration and entry into Pakistan
29 Months
& 20 days
NA
17 Months
& 20 days
3 months
Completed months
29 Months
NA
17 Months
3 months
Depreciation @ 2% per month
58 %
NA
34 %
6%
Admissible depreciation (Restricted to 50%)
50%
Nil
34%
6%
Reduction in value to the extent of admissible depreciation
US $ 700
(50% of US $ 1,400)
Nil
US $ 476
(34% of US $ 1,400)
US $ 84
(6% of US $ 1,400)
Depreciated value in US $ for the purpose of levy of duty
US $ 700
US $ 1,400
US $ 924
US $ 1,316
Prevailing exchange rate
US $ 1 =Rs. 60
US $ 1 =Rs. 60
US $ 1 =Rs. 60
US $ 1 =Rs. 60
Depreciated value in Pak Rupees for the purpose of levy of duly
Rs. 42,000
Rs. 84,000
Rs. 55,440
Rs. 78,960
- Once the value is determined the amount of taxes payable are calculated as under:
Value determined of 1600 CC new vehicle
Under gift scheme (Example II) Rs. 84,000
Custom Duty - applicable rate 65%
(65% of Value determined Rs. 84,000 Rs. 54,600
Sales Tax - applicable rate 15%
(15% of Value determined Rs. 84,000
plus Custom Duty Rs. 54,600
Total Rs. 1,38,600 Rs. 20,790
Income Tax - applicable rate 06%
(06% of Value determined Rs. 84,000
plus Custom Duty Rs. 54,600
plus Sales Tax Rs. 20,790
Total Rs. 159,390 Rs. 9,563
Capital Value Tax - applicable rate 6.25%
(6.25% of Value determined Rs. 84,000
plus Custom Duty Rs. 54,600
plus Sales Tax Rs. 20,790
Total Rs. 159,390 Rs. 9,962
Total Taxes Rs. 94,915
Each tax rupee that you pay helps Pakistan improve its standing, economically and socially, in the nations of the world.
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– Tell us.
If you are satisfied
– Tell others
Other Facilitation and Tax Education Material Produced by
Central Board of Revenue
Computer software Income Tax Assistant Version 1.0 for the tax year 2003
Income Tax Assistant Version 1.1 for the tax year 2004
Income Tax Assistant Version 1.1 for the tax year 2005
For computing chargeable income from salary, property, business, capital gains and other sources, exclusions from income, taxable income, applicable gross income tax, reductions, credits etc. and income tax payable / refundable
For generating related computations, returns, certificates, statements, wealth statement and its reconciliation
Publications Brochure – 001 Universal self-assessment and record keeping
Brochure – 002 Business accounts, documents and records
Brochure – 003 Taxation of income from salary
Brochure – 004 Taxation of income from property
Brochure – 005 Collection and deduction of tax at source
Brochure – 006 How to fill in income tax forms
Brochure – 007 Charities
Brochure – 008 Income Tax Appeals
Brochure – 009 Taxation of income from dividend
Brochure – 010 Depreciation, initial allowance and
amortization of capital expenditure
Brochure – 011 The mechanism of Alternate Dispute Resolution
Brochure – 012 Taxpayer’s Charter
Brochure – 013 Import of vehicles
Quarterly Review
Year Book
Under Publication
Pakistan Baggage Rules
Taxation of capital gains
Taxation of income from profit on debt
Incomes subject to final taxation
Sales Tax guide
F A T E
“Facilitation And Tax Education “
Is the Key to
Voluntary Compliance
And
Voluntary Compliance
Is the Key to
“Better Revenues”
