The Pakistani government is taking measures to address a loophole in the importation of used vehicles. Prime Minister Shehbaz Sharif has instructed the Federal Board of Revenue (FBR) to tighten oversight on the importation of used cars under schemes intended for overseas Pakistanis, such as the baggage scheme. The issue stems from the misuse of programs like the “personnel baggage scheme,” “transfer of residence,” and “gift scheme,” which permit returning residents and recipients of gifts from abroad to import used cars at discounted rates. However, some individuals exploit these schemes for commercial purposes.
The Misuse:
Cars are imported under these schemes using passports of overseas Pakistanis, often without their knowledge or consent. These cars are then promptly sold in the commercial market for profit. This undermines the intended purpose of the scheme and provides an unfair advantage to those exploiting it.
Government Response:
The government is addressing this issue through various means:
1. Increased FBR Scrutiny: Stricter checks will be implemented on used car imports, potentially involving verification of passport details, travel history, and ensuring that the imported vehicle aligns with the intended purpose of the scheme (e.g., personal use for returning residents).
2. Legal Amendments: The government is considering legal changes to prevent businesses from misusing passports of overseas Pakistanis. This may include imposing stricter penalties for passport misuse and requiring additional documentation for commercial importers.
3. Potential Sales Restrictions: One proposal being explored is to restrict the local sale of used vehicles imported under these schemes for a specified period, such as three years. This would discourage the practice of buying vehicles solely for resale and ensure that cars are genuinely used for personal purposes.
Benefits:
Implementing a more robust system for used car imports will benefit everyone involved. It ensures that the intended beneficiaries – returning residents and gift recipients – have legitimate access to the scheme. Additionally, it prevents businesses from exploiting the system and gaining an unfair advantage over legitimate car dealers. Regulating the used car market also allows the government to control potential price fluctuations and maintain a stable market environment.
Conclusion:
The government’s efforts to address the misuse of used car imports are a positive step towards creating a more transparent and fair importation system.
