Government Considering Limiting Domestic Sales of Imported Vehicles
The federal government is contemplating imposing limitations on the sale of imported used vehicles in Pakistan for a duration of up to three years in the upcoming fiscal year’s budget.
Prime Minister Shehbaz Sharif recently directed the Federal Board of Revenue (FBR) to curb the extensive misuse of personnel baggage schemes, transfer of residence, and gift schemes concerning the importation of old and pre-owned vehicles.
These schemes are reportedly being exploited for the import of used vehicles.
The PM instructed the member customs policy, FBR, to ensure strict adherence to the import policy regarding used vehicles.
A significant policy adjustment is anticipated, potentially restricting the local sale of imported used vehicles in Pakistan for a period of three years.
Furthermore, the FBR will propose legal amendments to prevent commercial importers from exploiting the passports of overseas Pakistanis. Often, vehicles are imported under the baggage scheme in the name of overseas Pakistanis but promptly sold in commercial markets.
According to the law, overseas Pakistanis can import vehicles under the personnel baggage scheme, transfer of residence, and gift scheme if they haven’t imported, gifted, or received a vehicle in the last two years under the Import Policy Order (IPO), 2022.
The Finance Bill 2024 is expected to address the misuse of the policy concerning the import of used vehicles.
