The 5-year old cars will be cheaper than the three years old one to be imported under transfer of residence and personal baggage schemes of expatriate having a stay of more than six months abroad and gifts schemes entitled to the blood relatives in case of more than two years stay abroad.
Although these schemes were meant for overseas Pakistanis the commercial importers would jump in to import cars on bulk basis, while using passport details of overseas Pakistanis. Dawn
“This is an implementation issue not a policy one”, a senior customs official told on condition of anonymity.
A total of 72,000 used cars and other vehicles imported under transfer of residence, personal baggage and gift schemes had arrived in 2005-06. At that time, the government had allowed import of 10 years old vehicles. But after a strong representation from the local assemblers, the imports have been continuously falling sharply.
In 2006-07, the age limit was reduced to five years and imports fell to 42,000 units. In 2007-08, the age limit was further slashed to three years.
In 2008-09, the government had imposed 50 per cent regulatory duty followed by 12.5 per cent increase in customs duty and cut in depreciation to one per cent from two per cent.
All Karachi Motor Dealers Association vice president Mohammad Muneer said at least the government has taken a step but for providing full relief to consumers, the government should now reduce the import duties on used cars.
daily dawn 10 december 2010
Above paragraph may be helpful for calculating the total tax...
