ISLAMABAD: In a major development, Pakistan has allowed the commercial import of used vehicles that are older than five years.
As per details, Pakistan has met another condition of International Monetary Fund (IMF) and permitted the commercial import of vehicles that are older than five years.
The Commerce Ministry has officially approved development and it will be effective from October 1, however the import will now be processed strictly through banks..
The authorities have confirmed that a 40 percent regulatory duty will be imposed on such imports, with the Federal Board of Revenue (FBR) expected to issue the notification for the levy soon.
On the other side, the Engineering Development Board (EDB) has also set strict standards for commercial imports. Only vehicles that secure international certification will be eligible for entry into Pakistan.
Furthermore, rules governing monthly depreciation or reduction in the assessed value of old vehicles will be announced soon, authorities added.
Earlier, the government announced that no accidental, damaged and low-quality used cars will be allowed into Pakistan.
As per details, the current government will also impose a heavy 40% tariff on commercial imports of used vehicles starting from September this year however official said that the tariff will result in protecting the local auto industry.
Meanwhile, the car prices will not provide any relief for the local consumers as the assemblers stated that high government taxation, ranging from 30% to as much as 61% of the retail price, already keeps vehicles expensive in the country.
The announcement was made during a joint meeting of the Senate Standing Committees on Finance and Industry yesterday. Joint Secretary for Trade Policy Mohammad Ashfaq told lawmakers that the government, under commitments made with the International Monetary Fund (IMF), will enforce additional tariff protection equivalent to 40% of the price of new cars.
