The current policy allows overseas Pakistanis to bring back their own car with them when returning to Pakistan under a baggage scheme or transfer of residence. It allows imports of used car as a ‘gift’ from abroad. But used car importers and dealers have been using this scheme to import cars on a commercial basis for onward sale. To prevent this abuse, the commerce ministry, on the advice of the State Bank, issued a simple new rule for clearing of used car imports. The new rules required that all duties and taxes paid on used cars being cleared under the baggage or transfer-of-residence schemes be made from bank accounts that are in the name of the person who is returning.
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