Used cars: FBR expected to collect Rs5b more in duties and taxes
Tax and duty on the import of used cars range from $4,400 to $23,100.
ISLAMABAD:
The Federal Board of Revenue (FBR) expects an additional revenue of Rs3 to Rs5 billion in the wake of the federal cabinet’s decision allowing import of five-year-old cars under the gift, personal baggage or transfer of residence schemes.
Earlier, the age limit was three years for imported used cars. The decision will also help normalise prices of cars in the country.
A senior official of the FBR told The Express Tribune that a notification of the decision is expected shortly. He also said that a proposal to rationalise tariffs on the import of used cars is also being considered, though a decision has not yet been made.
Sources said that tax and duty on the import of used cars are received either in dollars or an equal amount in rupees. An amount of $4,400 will be received as tax and duty on cars up to 800cc, $5,500 on cars from 801cc to 1,000cc, $11,000 on cars from 1,001cc to 1,300cc, $15,400 on cars from 1,301cc to 1,500cc, $18,700 on cars from 1,501cc to 1,600cc and $23,100 on cars from 1,601cc to 1,800cc.
According to sources, two per cent depreciation allowance will be allowed on those imported cars where it will not exceed 50 per cent of the price.
Published in The Express Tribune, January 28th, 2011.
The Federal Board of Revenue (FBR) expects an additional revenue of Rs3 to Rs5 billion in the wake of the federal cabinet’s decision allowing import of five-year-old cars under the gift, personal baggage or transfer of residence schemes.
Earlier, the age limit was three years for imported used cars. The decision will also help normalise prices of cars in the country.
A senior official of the FBR told The Express Tribune that a notification of the decision is expected shortly. He also said that a proposal to rationalise tariffs on the import of used cars is also being considered, though a decision has not yet been made.
Sources said that tax and duty on the import of used cars are received either in dollars or an equal amount in rupees. An amount of $4,400 will be received as tax and duty on cars up to 800cc, $5,500 on cars from 801cc to 1,000cc, $11,000 on cars from 1,001cc to 1,300cc, $15,400 on cars from 1,301cc to 1,500cc, $18,700 on cars from 1,501cc to 1,600cc and $23,100 on cars from 1,601cc to 1,800cc.
According to sources, two per cent depreciation allowance will be allowed on those imported cars where it will not exceed 50 per cent of the price.
Published in The Express Tribune, January 28th, 2011.