Govt suffers loss on used cars import

TOKYO: Pakistan-Japan Business Council (PJBC) President Rana Abid Hussain said on Tuesday that the government of Pakistan was losing Rs100 billion every year since it imposed tougher conditions on the import of used cars.

He held a meeting in this regard in Nagoya, where he said that the government fell short of its target to collect Rs450 billion in taxes this year, which was expected. He said that if the government removes the condition, overseas Pakistanis could send used cars on transfer of residence and gift schemes to their families, which could help boost tax collection.

As per the order given by the Ministry of Commerce on January 15, 2019, duty and taxes on all imported vehicles, in new and used condition, under personal baggage or gift scheme would be paid out of foreign exchange.

The foreign exchange would be arranged by Pakistani nationals themselves or local recipients supported by bank encashment certificate showing conversion of foreign remittance to local currency.