The government has issued SRO1067(1)/2017 on 20-10-2017 and made amendments in import schemes, Baggage, and Gift. Following the change fuss provoked in the local car market and people, dealers became puzzled as some elements circulated the news that government had altered the import policy for all schemes Baggage, Gift, and TR. Nevertheless, this was not the case as the change was not made on TR scheme. As per IPO-2016, APPENDIX-E (i.e., PROCEDURE FOR IMPORT OF VEHICLES UNDER THE PERSONAL BAGGAGE,

TRANSFER OR RESIDENCE AND GIFT SCHEMES), sub-paragraph (5) of paragraph (3) is now amended as below;

“All vehicles in new/used condition to be imported either under personal baggage or gift scheme, their duty and taxes will be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank encashment certificate showing the conversion of foreign remittance to local currency.”

In simple terms, the amount of duty on imported cars shall too come from abroad, and furthermore its money trail shall also be given at the time of paying the duty of car.

Subsequent to the change in policy confusion provoked in the market.So now to clarify, here is a simpler version of apprehension:

  1. People can bring cars in the country via TR- Transfer of Residence scheme without sending/bringing duty from the country the car is coming or showing its money trail.
  2. To acquire the self-assurance, an official,  said there was never any change on TR, it was just a misinterpretation. Some individuals claimed that they had pressured the authorities to overturn the decision on TR.
  3. Nevertheless, as said above, there was not at all any change in TR scheme. And for the sake of the argument even if we believe that some people have pressured the government in taking action and reversing the decision on TR scheme.
  4. Still the winning speeches they are giving on the subject of their pressure in the government is useless as just how many cars come in country under TR if evaluated with baggage and gift scheme. And not much of the people transfer their residence from abroad.

First and foremost these schemes were initiated by the government to provide a sigh of relief for Pakistanis who are living abroad. On the other hand, there are few conditions to bring car in the country as given below;

  1. Once in two years
  2. Not more than three years old model (Year of manufacturing)
  3. Importer Period of Stay outside Pakistan: As per the Transfer of Residence and Gift Scheme ,a minimum of 700 days stay outside Pakistan for the period of the immediately preceding three years from the date of application. Whereas under the Personal Baggage Scheme a minimum of 180 days stays outside Pakistan for the duration of the immediately preceding seven months from the date of application.

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