ISLAMABAD: The government has reportedly received No Objection from International Monetary Fund (IMF) import of five years old use cars in the country.
The import of used cars will commence from September 2025 on commercial basis as current regime of import of three years old used care by the overseas Pakistan will be discontinued.
The decision has been taken in the light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five years used cars aimed at increase in its revenue through import.
Local auto industry opposed the proposal at every level but FBR did not agree with them on different reasons.
The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years.
The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles.
Under the law, the overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022.
The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax paid at the time of local or import stage.
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