In a bid to clear up the pile-up of imported cars, the federal government is going to permit importers of used cars to pay a portion of the duty in local currency to release their vehicle stranded at Karachi port after meeting certain conditions.
On Monday, the import policy order 2016 was amended by the Ministry of Commerce (MoC) through an SRO which states,
In case the Pakistani rupee depreciates or the government increases the import duties or taxes after receipt of remittance and before filing of good declaration, which results in shortfall of remitted amount against payable duties and taxes, the importer is allowed to meet the shortfall through local sources.
Sources say this will help ensure the clearance of imported cases and help make up the cases of a shortfall in remitted duty/taxes; plus the stranded cars at the port had been causing losses to the owners of vehicles.
The amendment will be executed in backdate and will be effective from 15th Jan 2019, the same day when the MoC had originally imposed the requirement that duty and taxes on all imported vehicles, in original and used state, under personal baggage or gift scheme will be paid in foreign exchange arranged by Pakistani nationals themselves or local recipients backed by bank encashment certification validating conversion of foreign remittance to local currency.
According to officials, this condition had originally been imposed as a means to dissuade misuse of gift and baggage schemes, increase foreign exchange for Pakistan and curb imports as a whole.
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