The federal government is contemplating imposing restrictions on the sale of imported used vehicles in Pakistan for a duration of up to three years in the upcoming fiscal year’s budget. It’s reported that Prime Minister Shehbaz Sharif, in a recent meeting, instructed the Federal Board of Revenue (FBR) to address the widespread misuse of personnel baggage schemes, transfer of residence, and gift schemes concerning the import of used vehicles.
Allegations suggest that these schemes are exploited for the import of used vehicles. The PM urged the FBR’s member customs policy to ensure strict adherence to import policies regarding used vehicles.
Anticipated changes include a significant policy shift aiming to limit the local sale of imported used vehicles in Pakistan for three years. Additionally, the FBR plans to propose legal amendments to prevent commercial importers from abusing the passports of overseas Pakistanis. Often, vehicles are imported under the names of overseas Pakistanis through baggage schemes and promptly sold in commercial markets.
According to existing laws, overseas Pakistanis eligible for importing vehicles under these schemes must not have imported, gifted, or received a vehicle in the last two years under the Import Policy Order (IPO) of 2022.
The Finance Bill of 2024 is expected to address the misuse of policies regarding the import of used vehicles, according to sources.
