@ murtaza
I want to clarify certain things here(courtesy FBR website)
1.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.
2.Used vehicles can be imported only by Pakistani Nationals under any of the following three schemes (certain restrictions and conditions apply):
Transfer of residence
Gift
Personal baggage
3.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
a.Speical 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
TAX RELAXATION:
The amount of taxes stated 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.
EXAMPLE ON HOW TO CALCULATE TAX:
Scheme:Gift scheme
Capacity 800 CC (Asian Make)
Date of registration abroad: 1st January, 2005
Date of entry into Pakistan 10th July, 2007
Period between first registration and entry into Pakistan 3- Months and10 days
Completed months :30 Months
Depreciation @ 2% per month 60%
Admissable depreciation(restricted to 50%) 50%
Full amount of taxes US 4000$
Reduction in taxes to the extent of amount of depreciation: US 2000$(50% of 4000$)
Actual amount of payable taxes: US 2000$
