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.
The Ministry of Commerce of Pakistan recently issued a notification, SRO 52(I)/2019, dated January 15, 2019, as an amendment to the Import Policy Order 2016.
Under the revised regulations, all vehicles imported under concessionary schemes, which include transfer of residence, personal baggage, or gift schemes, must adhere to a set of stringent conditions. The pivotal requirement now mandates that the duty and taxes for these vehicles must be paid using foreign exchange. This foreign exchange can be arranged either by the Pakistani nationals themselves or by local recipients supported by a bank encashment certificate, showcasing the conversion of foreign remittance into the local currency.
The notification explicitly states that the remittance utilized for the payment of duties and taxes should originate from the account of the Pakistani national who is sending the vehicle from abroad. This account must receive the remittance for the sole purpose of settling the payment obligations. In scenarios where the account of the Pakistani national sending the vehicle is non-existent or inoperative, the remittance can be received in the account of their family.
This amendment in the Import Policy Order is a strategic move by the government to ensure that all vehicles brought into the country under concessionary schemes are subject to the payment of duties and taxes using foreign exchange. This approach not only seeks to regulate and monitor the importation of vehicles but also aligns with pertinent fiscal and monetary policies.
The Ministry of Commerce emphasizes that this measure aims to bolster fiscal discipline and curb any potential misuse or evasion of duties and taxes associated with vehicle imports. By mandating the use of foreign exchange, authorities can better track and account for financial transactions related to the importation of vehicles under concessionary schemes.
Importers, Pakistani nationals, and individuals involved in the importation of vehicles under concessionary schemes are strongly encouraged to familiarize themselves with these new regulations. Staying informed and compliant with these stringent conditions will not only facilitate a smoother importation process but also ensure that all stakeholders uphold their fiscal responsibilities.
As Pakistan continues to refine its trade and fiscal policies, these measures signify a proactive approach by the government to maintain a robust and transparent regulatory framework in the realm of vehicle imports under concessionary schemes.
This is a good decision as it will stop the flooding of markets with imported vehicles and stop people doing illegal business
We respect government policies but there must be given some implementation time line for clear the backlog otherwise many peoples who already booked the car but will reached after one month will face 100% loss !
Immediate Change in policy is not a professional way through this way they are disturbing Indivifual car buyers and importers.
If their immediate policy hit their people directly
and directly then it’s not good for all as we are Muslims and we have to given benefit to others I stead of giving sudden loss which is in Millkln