Pkrevenue.com

Category: Automotive

PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.

  • Import of used vehicles: changes to payment of duty, taxes approved

    Import of used vehicles: changes to payment of duty, taxes approved

    ISLAMABAD: The government has approved changes to payment of duty and taxes system for clearance of used vehicles, which are allowed to import under three different schemes.

    The Economic Coordination Committee (ECC) of the Cabinet on Wednesday on a proposal by the Commerce Division, took up the import of used vehicles under personal baggage, transfer of residence and gift schemes which require the payment of duties and taxes to be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipients producing proof of conversion of foreign remittance to local currency, and allowed the importers to meet any shortfall in arrangement of required foreign remittance for payment of duties and taxes through local sources in case of a scenario where the Pak rupee depreciates or government increases the import duties and/or taxes after the receipt of remittance and before the filing of the good declaration, which results in shortfall of remitted amount vis-a-vis payable duties and taxes.

    The ECC decision would help clear up a total of 1017 vehicles currently stuck at Karachi port because either no foreign remittance had been received or the remitted amount had been rendered insufficient due to depreciation of PKR before the filing or goods declaration or increase in the rate of duty in the Finance Act 2019.

    On another proposal by the Commerce Division, the ECC accorded ex-post approval to an SRO issued by Commerce Division on August 21, 2019 for extending till August 31, 2019 the implementation of quality standards on the import of solar PV equipment into Pakistan under an SRO issued by the Commerce Division on May 28, 2019.

    The Commerce Division had issued the SRO in late August following instructions from the Prime Minister to resolve the issue of several containers stuck up at ports due to lack of clarity amongst stakeholders, pre-shipment companies and border agencies regarding documents required for observance and implementation of the quality standards introduced on May 28, 2019 as per a decision of the federal cabinet.

  • FBR allows reduced duty rates for import of certain CBU vehicles

    FBR allows reduced duty rates for import of certain CBU vehicles

    KARACHI: Federal Board of Revenue (FBR) has allowed reduced rate of customs duty on import of certain automotive vehicles in Completely Built Units (CBUs) under Automotive Development Policy 2016-2020.

    Following are the automotive vehicles, which are granted reduced customs duty rates on import:

    1. Agricultural Tractors, having an engine capacity exceeding 26 kW but not exceeding 75kW (PCT code 8701.9220, 8701.9320) at 15 percent.

    2. Agricultural Tractors (other than mentioned at S. No. 1 above) (PCT Code 8701.9100, 8701.9400, 8701.9500) at 10 percent.

    3. Fully dedicated LNG buses (CBU) (PCT Code 8702.9030) at one percent

    4. Fully dedicated LPG buses (CBU) (PCT Code 8702.9040) at one percent

    5. Fully dedicated CNG buses (CBU) (PCT Code 8702.9050) one percent.

    6. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8702.2090, 8702.3090) at one percent.

    7. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8704.2214, 8704.2294, 8704.2340, 8704.3240) at one percent.

    8. Trailers (PCT code 87.16) at 15 percent

  • Ministry opposes suggestions to allow commercial import of used cars

    Ministry opposes suggestions to allow commercial import of used cars

    ISLAMABAD: The ministry of industries and production has opposed the suggestions to allow commercial import of used and old motor cars into Pakistan.

    In an office memorandum, the ministry said that a meeting was held earlier this month with the car dealers federation to analyse suggestions to devise import and re-export of used vehicles policy 2019/2029 wherein it was unanimously observed that the dealers were interested in commercial import of used/old cars.

    The ministry said that as for the investment plan of $3.2 billion, the same seems irrational as importers do not plan to build any manufacturing facilities in near future. The Engineering Development Board (EDB) has therefore opined that proposed plan will negatively affect existing OEMs, new entrants and auto part manufacturers.

    The ministry further said that it is important to consider that Auto Development Policy (ADP) 2016-2021 has attracted investment of more than $1.3 billion so far from foreign investors who are at various stages of setting up their projects.

    Under ADP 2016/2021, fifteen new investors have been granted Greenfield status and under Brownfield category two closed down units have been revived, the existing OEMs are enhancing their capacities, their production and other new entrants are expected to start their production/complete their manufacturing facilities shortly. As per business plans, few new entrants have planned to export as well.

    “In view of above, allowing commercial import for domestic market would be against the spirit of Automotive Development Policy 2016/2021, which was prepared in consultation with Board of Investment, FBR and Ministry of Commerce etc.”

    It is also pertinent to point out that import of used cars would be at odds with the relevent import policy provision, hence it is requested to reject the proposal.

  • Procedure for import of motor vehicles into Pakistan

    Procedure for import of motor vehicles into Pakistan

    KARACHI: Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under three different schemes, according to a guide issued by Federal Board of Revenue (FBR).

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  • Import of used motor cars decline by 36 percent in seven months

    Import of used motor cars decline by 36 percent in seven months

    KARACHI – The import of Completely Built Unit (CBU) motor cars has witnessed a significant decline of 36 percent, primarily attributed to the restrictions imposed on non-filers of income tax returns, according to data released by the Pakistan Bureau of Statistics.

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  • FED rates revised for locally manufactured, imported vehicles

    FED rates revised for locally manufactured, imported vehicles

    Federal Excise Duty (FED) rates have been revised for locally manufactured and imported vehicles through the Finance Supplementary (Second Amendment) Bill, 2019.

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  • Car imports fall sharply by 43pc on regulatory duty, currency devaluation

    Car imports fall sharply by 43pc on regulatory duty, currency devaluation

    The car imports in Pakistan experienced a substantial decline by 43 percent due to significant devaluation of local currency and imposition of regulatory duty.

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  • Pakistan imposes new conditions for clearance of new and used imported vehicles

    Pakistan imposes new conditions for clearance of new and used imported vehicles

    In a bid to enhance transparency and ensure fiscal compliance, Pakistan has implemented new conditions for the clearance of both new and used imported vehicles under concessionary schemes.

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  • ECC approves clearance of imported vehicles on verified foreign currency payment

    ECC approves clearance of imported vehicles on verified foreign currency payment

    ISLAMABAD – In a recent session, the Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Asad Umar, gave its approval for a significant policy shift regarding the clearance of imported vehicles under various schemes.

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  • Auction of confiscated vehicles on Jan 23 by Rawalpindi Customs Intelligence

    Auction of confiscated vehicles on Jan 23 by Rawalpindi Customs Intelligence

    The Directorate of Intelligence and Investigation – Customs, Rawalpindi, has officially declared a public auction of confiscated vehicles scheduled for January 23, 2019.

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