Import Policy Order
IMPORT POLICY ORDER 2020
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FBR notifies rates on the import of used Asian vehicles
ISLAMABAD: The Federal Board of Revenue (FBR) notified new lower rates of taxes and duties in dollar terms that would be applicable on the import of old and used vehicles of Asian make in the country.
The customs duty, sales tax and withholding tax, which will be in excess of the cumulative amount specified in the SRO issued here, would stand exempted.
The FBR has allowed import of used cars above 800cc engine capacity for the first time ever. Imports of vehicles up to 800cc were allowed before the issuance of this SRO.
According to the government policy, overseas Pakistanis have the privilege to import old and used vehicles and cars up to three years old and used under transfer of residence, personal baggage and gift scheme notified under Import Policy Order 2009 by the Ministry of Commerce.
SRO (I)/2010 issued in this regard stated that in exercise of the powers conferred by Section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of Section 13 of the Sales Tax Act, 1990, sections 148 and 53 read with the Second Schedule to the Income Tax Ordinance, 2001 (XLIX of 2001), the federal government is pleased to direct that the following further amendments shall be made in its notification No SRO 577(I)/2005, dated June 6, 2005, namely: In the aforesaid notification, (i) in the preamble, after the word ‘vehicles’ the words of ‘Asian makes’ shall be inserted; and (ii) for the table, the following shall be substituted, namely:- automotive vehicles of Asian makes meant for transport of persons, duty and taxes in dollar or equivalent amount in rupees.
Duty and taxes of dollar or equivalent amount in rupees that would be applicable on import of vehicles of Asian makes included $4,400 for vehicles up to 800cc engine capacity. Some $5,500 from 801cc to 1000cc engine capacity.
Some $11,000 from 1001cc to 1300cc engine capacity. $15,400 from 1301cc to 1500cc engine capacity. Duty and taxes of $18,700 from 1501cc to 1600cc engine capacity. Duty and taxes of $23,100 from 1601cc to 1800cc engine capacity, however, the specified rate would not be applicable to the import of jeeps. A senior customs official explained that earlier up to 800cc vehicles of Asian makes were assessed at $4,400 per vehicle, however, now onwards, cars and other vehicles from 801cc engine capacity to 1800cc engine capacity of Asian makes would also be assessed at the rates notified in the SRO issued here on Friday.
Under the SRO 577(I)/2005, the federal government had exempted old and used automotive vehicles meant for transport of persons, on the imports from so much of the customs duty, sales tax and withholding tax as are in excess of the cumulative amount specified.
Under this SRO duty and taxes of $4,400 or equivalent amount in rupees was applicable on the import vehicle up to up to 800cc Asian make only. Duty and taxes of $6,600 up to 800cc engine capacity of other than Asian makes. Duty and taxes of $5,500 from 801cc to 1000cc engine capacity of other than Asian makes. Duty and taxes of $11,000 from 1001cc to 1300cc engine capacity. Duty and taxes of $15,400 from 1301cc to 1500cc engine capacity. Duty and taxes of $18,700 from 1501cc to 1600cc engine capacity. Duty and taxes of $23,100 from 1601cc to 1800cc engine capacity of only Asian makes. Depreciation in the duties and taxes at 2 percent per month in payable amount as per cumulative scales shall be allowed subject to a maximum of 50 percent as per Customs General Order No 14 of 2005 dated June 6, 2005. staff report
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