Car import plunges by 80 percent on payment in foreign exchange condition

KARACHI: The import of completely built unit (CBU) cars has sharply declined by 80 percent in March 2019 owing to mandatory requirement of paying duty and taxes through foreign exchange.
According to Pakistan Bureau of Statistics (PBS) the import of motor cars fell 80 percent to $6.14 million in March 2019 when compared with $30.5 million in the same month of last year.
It is worth mentioning here that the ministry of commerce issued SRO 52(I)/2019 dated January 15, 2019 which stated 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 Pakistani nationals themselves or local recipient supported by bank enchashment certificate showing conversion of foreign remittances to local currency.
The payment through foreign exchange should be:
a. The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and
b. The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.
The import data of motor vehicles issued by Pakistan Bureau of Statistics (PBS) revealed that motor cars worth $209 million were brought into the country during July – March 2018/2019 as compared with $359.56 million in the same period of the last fiscal year.
The car import also fell due restrictions on non-filers for registering the imported vehicles.
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