FBR to allow temporary import of vehicles

Proposed policy allows foreigners to bring their vehicles with them for a period of three months

ISLAMABAD:

The country’s taxman has announced a new policy allowing foreigners visiting Pakistan for tourism or business to bring their vehicles with them for a period of three months.

However, if the vehicles are kept in Pakistan for more than three months, the foreigners will have to pay duty and taxes at the prevailing rate.

According to a document obtained by The Express Tribune, the Federal Board of Revenue (FBR) has drafted the Temporary Import of Vehicles Amendment Rules, 2023 and asked all stakeholders to submit their feedback –objections and opinions—within 15 days.

Feedback received after 15 days will not be accepted. After incorporating the feedback, the FBR will implement the rules through a gazette notification.

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Under the proposed rules, foreign tourists, businesspeople, or foreign nationals visiting Pakistan for health or transit purposes will be allowed to bring their vehicles with them.

However, those staying in Pakistan for more than three months will not be eligible for temporary vehicle import and duty and taxes will be collected on the vehicle at the prevailing rate.

The proposed rules also outline the procedure for exporting the temporarily imported vehicle.

The officer in charge of the customs station of exit at the time of export will stamp the passport of the vehicle's importer and verify the information related to the vehicle being imported into Pakistan on behalf of the importer.

The export of the vehicle will be recorded in Pakistan Customs' computerised system, and the Federal Investigation Agency (FIA) will be informed accordingly.

Additionally, the rules stipulate that at the end of every month, the officer in charge of the Customs station of entry will record and reconcile the data of all vehicles imported and entered through that station during that month.

Any vehicles that remain in Pakistan for more than three months will be identified, and steps will be taken to recover the duties and taxes due on these vehicles. If the duty and taxes are not paid, the vehicles will be confiscated as per the rules.