KARACHI: The Federal Government has increased the limit of deduction allowed in the value of vehicles to arrive at the taxable amount in case of vehicles imported duty-free by a privileged person, organization, office, agency and the dignitaries of UAE & Qatar and were then sold or disposed of.
The maximum deduction of 75 percent is now allowed to determine the value of a vehicle on which customs duty and other taxes shall be payable if such a vehicle is sold or disposed of after ten years from the import of such vehicle.
According to SRO 239(I)/2013, the taxable value would be determined after deduction of 55 percent depreciation plus further deduction of 1.0 percent per month of duty and taxes calculated from 10 years of import.
In case of vehicles sold after five years but before 10 years, a maximum of 55 percent concession is allowed that can be arrived after deduction of 35 percent depreciation plus further deduction of 1.0 percent per month of duty and taxes calculated from five years of import.
The vehicles sold after one year of import but before five years shall be allowed a concession of maximum 35 percent.
However, vehicles sold before the expiry of one year shall have to pay the whole of duty and taxes leviable at the time of import.
Earlier, a maximum of 50 percent was allowed on vehicles sold or disposed of after expiry of one year from the date of import.
Duty/tax relaxation on sale of duty-free imported vehicles increased
