Import Policy Order 2009:
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FBR notifies rates on 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
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 on 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