Government relaxes car import duty rate by 2%

Published: March 30, 2011

The new depreciation policy is applicable only to Asian made vehicles. PHOTO: FILE

ISLAMABAD: 

The federal government has reduced import duties on cars up to five-year old by two per cent, citing wear and tear of vehicles as the reason.

The move comes as part of a bid to crack down on rising prices of locally assembled cars, and follows the increase in the imported car age limit from three years to five years. The Federal Board of Revenue has notified new depreciation rates, but the Statutory Regulatory Order (SRO) has added that only 60 per cent of the depreciation value can be availed.

After new amendments, the value of assessment of used cars would be decreased by 10 per cent, as the effective depreciation rate will become 60 per cent.

Moreover, the depreciation is only for Asian made vehicles, as the new SRO is an amendment to the 2005 SRO, which focuses only on Asian made cars.

For cars up to 800cc, total payable duty is $4400 and the importer can claim up to two per cent of the duties on account of wear and tear. For cars up to 1000cc cars, the duty rate is $5500. For cars up to 1300cc, importers must pay $11000 in taxes, but can claim two per cent of it on account of aging.

For cars up to 1500cc cars, duty will be $15400, cars up to 1600cc, the duty rate is $18700, while for cars up to 1800cc, duty will be $23100. Under the gift, baggage and transfer of residence schemes, cars with engine displacement of over 1800cc cannot be imported.

Published in The Express Tribune, March 30th, 2011.

Reader Comments (3)

  • Babs
    Mar 31, 2011 - 4:06PM

    This is just ridiculous! who in their right mind would buy a 5yr old used Asian car for USD23100?Recommend

  • Hedgefunder
    Apr 1, 2011 - 2:37PM

    Which idiot in charge decided to reduce duties on these imports ????
    This is not a necessity, its luxury !! There are far too many basic needs for the people which require attention and resources, than reduction in import duties on vehicles!!!!
    How many people in pakistan are in position to afford one!! I am sure aam aadmi on streets is more concerned about rising prices of basic food and fuel, than to be impressed by this utterly stupid decision of reduction in duty!!!!!
    Wake up People of the Land of Pure !! there is nothing pure about the people in charge of running your lives!! Line them up in front of Firing squad and send them to their paradise!!! Rest assure you will be better off without them, even if you uneducated or illiterate !!
    you won’t screw it up to this extent!!!Recommend

  • Asfand Niazi
    Apr 1, 2011 - 7:19PM

    It’s so sad that 3 car manufacturers dictate the car policy in this country. Why can’t the government just liberalize it and let anyone who wants to import cars to import them and whoever wants to get ripped off by the local manufacturers can get ripped off. We need to reduce car duties in a big way so we the middle class can afford buying cheap cars from abroad. Pakistan car manufacturers have a monopoly in this country and due to that are making tons of money on the expense of the poor consumers. Recommend

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