The government is going to introduce a brand new theme or regulative framework to permit the import of used vehicles. solely business importers are allowed to try to to therefore with sure Quantitative Restrictions (QRs).
Sources discovered that Dr. Abdul Hafeez Shaikh, authority to PM on Finance and Revenue, can chair a gathering on Monday to debate the import of vehicles below personal baggage, transfer of residence and gift schemes for overseas Pakistanis.
The meeting would discuss the chance of introducing a theme for business importers, taking into consideration the views of the Finance Division, Commerce Ministry and also the Federal Board of Revenue (FBR).
Import Policy Order, 2016
According to the Finance Division, the Import Policy Order 2016 of the Commerce Division includes numerous vehicles import schemes e.g. personal baggage, transfer of residence and gift schemes for overseas Pakistanis. This regulative instrument permits the import of recent or used vehicles and is aimed to facilitate authentic overseas Pakistanis.
Misuse of the schemes
The schemes are reportedly used by the business importers, United Nations agency foreign vehicles mistreatment overseas Pakistanis’ passports. solely around five p.c of the cars were really foreign by real overseas Pakistanis. This diode to associate outflow of interchange from the country through Hawala/Hundi and there was a necessity for corrective measures to discourage this observe.
Hence, the Commerce Division has prescribed a transparent dealings mechanism to curb this observe and affected a outline for the computer code of the cupboard, that introduced the subsequent mechanism through associate change within the Appendix-E of the Import Policy Order:
All vehicles in new/used condition to be foreign below transfer of residence, personal baggage or below gift schemes, the duty and taxes shall be paid out of interchange organized by Asian country nationals themselves or native recipient supported by banks encashment certificate showing conversion of foreign remittances to local currency, as under:- (i) the remittal for payment of duties and taxes shall originate from the account of Pakistani national causing the vehicle from abroad and; (ii) the remittance shall either be received within the account of Pakistani national sending the vehicle from abroad or, just in case his account is nonexistent or dead, within the account of his family.
On the opposite hand, the Federal Board of Revenue (FBR) has reservations regarding this new mechanism and has forwarded a note for the minister of finance seeking permission for submission of the outline to the computer code of the cupboard.
The Bureau is inquiring for, the simplification of the mechanism permitting any Pakistani national, aside from the one causing the vehicle, to rearrange and remit interchange which the recipient’s account may be of a customs clearing agent or notified party within the Bill of Landing and shouldn’t essentially belong to the Pakistani national or his friend.
FBR and also the Ministry of Commerce disagree on this policy. the previous is of the opinion that the import of the vehicles below Personal Baggage, Transfer of Residence and Gift theme ought to be relaxed for the business importers to boost revenue. Also, limiting imports has implications for the competition within the native automobile market.