ISLAMABAD: The import of used and old cars recorded a growth of 166 percent during first seven months (July – January) of 2020/2021 owing to significant decline in coronavirus cases and relaxation in economic activities by easing COVID lockdown.
According to data released by Pakistan Bureau of Statistics (PBS) on Wednesday, the import payment for used and old cars surged to $116 million during first seven months of the current fiscal year as compared with $43.64 million in the corresponding months of the last fiscal year.
Sources in Pakistan Customs attributed the growth in imported cars to ease in travel restriction following decline in coronavirus cases across the world and start of vaccination to cure the pandemic.
As per import policy of Pakistan every person can bring a new motor car by paying prevailing rate of duty and taxes. However, the commercial import of motor cars is not allowed.
The import of used cars is allowed under various schemes to facilitate Pakistanis living abroad. The overseas Pakistanis can bring motor cars under personal baggage, transfer of resident or gift schemes.
New vehicles can be imported into Pakistan freely by any one against payment of duty & taxes under generally applicable import procedures and requirements.
Officials in Pakistan Customs said that Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under the following 03 schemes: Personal Baggage; Gift Scheme; Transfer of Residence.
Cars not older than 03 years and other vehicles not older than 05 years can be imported under these schemes.
The structure of duty and taxes under these 03 schemes remains the same. Motorcycles and Scooters can only be imported under Transfer of Residence Scheme.
Students receiving remittance from Pakistan, non-earning members of the Pakistani nationals living abroad and those who have imported, gifted or received a vehicle in the past two years are not eligible.
The customs authorities said that all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank enchashment certificate showing conversion of foreign remittance to local currency, as under:
a. the remittance for payment of duty and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and
b. the remittance shall either be received in account of Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.