People in Pakistan not only purchase used cars made locally to maintain a strategic distance from the clumsiness of late delivery time and premium but also addition import autos under; used car import schemes namely baggage, gift and transfer of residence schemes. However, there has been an issue of SRO 1067(1) by the government of Pakistan which has made it tougher to import cars.
At the time of issuing the SRO, the government declared that the step is being taken to control the trade deficit of Pakistan; furthermore, these schemes were presented to provide the wants of foreign Pakistanis which mean these schemes are not to be used for profitable or commercial purpose.
A total of 76,635 components were transported in 2017. It was also stated that due to extreme imports local industry saw a income loss of PKR 23bn previous year.
After much concern and government’s unwillingness to deliver any kind of liberation to importers, they complained and professed that they will not be taking their cars until government withdraws its policy. Around 7,000 autos have been stranded at the port. Furthermore, because of this circumstance, the premium on cars have additionally achieved a record-breaking high. Notwithstanding, the government announced that they may clear the autos stuck at port in port in previous customs duty to offer a relief to consumers and importers. What’s more, the present update on this entire situation is mentioned below.
According to the authorized sources, the Economic Coordination Committee (ECC) of the Cabinet, arranged a meeting on 7th of February and has decided the providence of thousands of used imported cars stuck at ports.
On October 6 of last year, Economic Coordination Committee (ECC) of the Cabinet had approved that the duty and taxes of all cars that are imported under personal baggage or some gift scheme will come from abroad; either settled by local recipient or Pakistani nationals showing change of overseaspayment to local currency through bank encashment certificate.
According to the SRO 1067(1) which has been newly issued, many deliveries that were transported got stuck at the ports and Dr. Miftah Ismail, the Finance, Revenue and Economic Affairs Adviser, suggested on discharging the deliveries, so the individuals who have imported before the SRO issuance wouldn’t have to face problems. Furthermore, he also recommended making it easy as well as effective for vehicles arriving after February 28, 2018, where the importers will have to pay their duties at the greater exchange rate.
It is now confirmed that the Commerce Ministry has suggested to the ECC to clear those cars where the bill of landing was issued on or beforehand the 9th of January 2018.