Govt allows commercial import of five-year-old vehicles

ISLAMABAD: The government has allowed commercial import of old/used vehicles up to five years from the present three-year-old vehicles.

The Senate Standing Committee on Finance met under the chairmanship of Senator Saleem Mandviwalla here on Friday. Secretary Commerce Jawad Paul informed the Senate panel that the period for the import of old/used vehicles under the Baggage Scheme was not changed, and overseas Pakistanis could continue to import three-year-old vehicles under this scheme, adding that from September 1, the commercial import of five-year-old vehicles would be allowed.

However, there would be an additional tariff protection of 40 per cent on such vehicles in FY 2025-26, as the tariff would be restricted at 50 per cent from the earlier average tariff of 90 per cent.

In the next four years, the 40 per cent additional import tariff would be brought to zero on the import of used and old vehicles. In the future, the import of six to seven years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles do not create environment-related problems in the country.

Mandviwalla said the same time period of five years should apply to the import of vehicles under the baggage scheme as well as commercial import. The government should give the same treatment to overseas Pakistanis and commercial importers for the import of vehicles, he added. The commerce secretary said the gift scheme was being misused on the import of old and used vehicles.

Meanwhile, the National Assembly’s Standing Committee on Finance and Revenues met under the chairmanship of Syed Naveed Qamar, which granted approval for bringing over Rs10 million pension into the tax net at a rate of 5 per cent.The NA panel also approved amendments proposed in the Income Tax in the Seventh Schedule, which provides special treatment for the banking sector. The FBR has proposed five amendments for disallowing banks from incorporating expenses from the payment of taxes, including the rented building of banks and advances to non-performing loans.