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.
The ECC decided that imported vehicles could only be cleared through payment in foreign exchange.
The ECC meeting saw the approval of a proposal presented by the Commerce Division, which stipulates that duty and taxes on all imported vehicles, whether new or used, under personal baggage or gift schemes must be paid using foreign exchange. This foreign exchange should be arranged by Pakistan Nationals themselves or local recipients, supported by a bank encashment certificate that demonstrates the conversion of foreign remittance into local currency.
This decision marks a notable change in the process of clearing imported vehicles under different schemes and aims to streamline the process by enforcing the use of foreign exchange. This step aligns with the government’s efforts to enhance transparency and efficiency in various sectors of the economy.
The ECC also approved regulatory amendments in the Export Policy Order of 2016 and Import Policy Order of 2016, as proposed by the Commerce Division. These amendments have been designed to promote ease of doing business, removing unnecessary bureaucratic hurdles, and facilitating trade and commerce.
Furthermore, the ECC granted approval for the withdrawal of customs duty, additional customs duty, and sales tax on the import of cotton, effective from February 1 to June 30, 2019. This decision is aimed at ensuring an ample supply of cotton for the textile industry. The textile sector is a significant contributor to Pakistan’s economy, and an uninterrupted supply of cotton is essential to maintain its growth and competitiveness.
The decision to withdraw these taxes for a specified period is a strategic move to support the textile industry, which plays a vital role in employment generation and export earnings. It reflects the government’s commitment to promoting industrial growth and addressing the needs of key sectors of the economy.
The ECC’s decisions reflect a concerted effort by the government to create an enabling environment for businesses and enhance the ease of doing business in Pakistan. By streamlining the clearance process for imported vehicles and providing tax relief for the cotton industry, the government aims to stimulate economic growth and create a business-friendly environment that benefits both local and foreign investors. These measures are part of a broader strategy to boost economic development and foster a more vibrant and dynamic economy.
We appreciate PTI government policy regarding at import SRO 52-1 but please give us 15 Days Notice period for Clearing cars which are booked with shipping g company before 15th January but shipment from Japan is 25th January 2019.
Immedae policy can disturb may families life interns of Financial crises
So government should give time line just like they gave timeline for cotton Import.