KARACHI: In order to bridge the ballooning current account deficit and curb unnecessary imports, the government has taken several measures. Soon after slapping regulatory duty on over seven hundred importable goods, government has notified import rationalisation measures for vehicles.
Economic Committee of Cabinet (ECC) considered recommendations of Ministry of Commerce and approved certain import rationalisation measures.
Import of all vehicles under personal baggage, transfer of residence and gift scheme are subject to duty and taxes out of foreign exchange by overseas Pakistani themselves as in the case of car with engine capacity of 1800c or and above
An official said it was a good measure and would discourage import of vehicles from abroad as well as it will discourage use of passports of overseas Pakistanis by the traders.
Under these schemes, one overseas Pakistani is entitled to bring one vehicle into the country after paying leviable duty and taxes. However, certain traders were using the passports of such citizens for bringing vehicles into the country, and they paid duty and taxes here in local currency.
With the above notified measure, the overseas Pakistani nationals willing to bring a vehicle into the country would have to pay leviable duty and taxes in foreign exchange through bank account setup abroad.
The official said this would discourage import of vehicles, which was a burden on the country’s trade balance as well as it would earn valuable foreign exchange for the country.
However, sources said that this would further strengthened the so called cartel of local auto assemblers. The local assemblers have come under severe and continuous criticism for the monopoly they have created.
The locally assembled vehicles are much inferior in quality and specifications as compared to imported vehicles and even then these vehicles are being sold at unjustifiably high prices.
Car importers to pay duty in foreign exchange through a bank account abroad
