KARACHI: One Customs clearing agent Syed Amjad Ali Shah has expressed concerns over the recently issued statutory order that customs duty and taxes would be collected in foreign exchange on vehicles imported under personal baggage, gift, and transfer of residence schemes.
The Ministry of commerce has amended Import Policy that all vehicles in new or used condition to be imported either under personal baggage or under gift scheme, the duty and taxes will be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipient supported by bank encashment certificate showing conversion of local currency.
In a letter to Prime Minister Shahid Khaqan Abbasi, the customs clearing agent said that the said amendment would adversely affect people associated with importing vehicles and their subsequent trade in the local market.
He said all vehicles are imported into Pakistan; in the name of Pakistani Nationals living abroad entitled to import used vehicle under personal baggage in terms of Appendix-E of IPO 2016; by the local investors/showroom dealers/individuals.
This is an open secret that imported vehicles under the use from lower strata of society up to the level of President of Pakistan were all imported in similar manner. Addressing PM of Pakistan in a very sarcastic tone, Amjad Ali Shah said this aspect is in the knowledge of entire state machinery. Interestingly no efforts were ever made by the Ministry of Commerce and FBR to amend the policy bringing this trade within the ambit of fiscal statutes.
This amendment has immediate effect on the trade resulting slow down of economic activities in the field of car trade causing importers to stop shipments of thousands of vehicles ready for shipment till December 2017, he added that this amendment will result in the smuggling of all sorts of used and new cars and strengthen the monopoly of local auto assemblers.
Amjad Ali shah demanded that the said amendment in the Import Policy is withdrawn immediately from the date of its issuance and effectiveness.