Pakistan has slashed duties on car imports by overseas Pakistanis. "Slashing duties will not only encourage Pakistani expats to export more vehicles but will also boost the used car market in Dubai and Sharjah," said Atiq Cheema, owner of Hina Motors in Dubai.
People in the right-hand drive used car market had earlier reported dull business due to high taxes on import of vehicles to Pakistan. Cheema said many people are now buying big vehicles such as Land Cruisers, Pajeros and Mercedes Benz imported from Japan to be re-exported to Pakistan.
The duty on vehicles of 1800cc and above has been reduced from 200 per cent to 150 per cent. "The new rules will benefit people who like to take cars to Pakistan on transfer of residence or with their personal baggage. The step will boost our business and encourage more people to take bigger vehicles back home," said another car dealer.
The incentive has also attracted more vehicle traders from Pakistan to purchase cars, jeeps, trucks and buses from the UAE.
According to amended regulations called "The Personal Baggage and Gift Scheme (import of vehicles) Rules," customs duty on a Hiace van with seats is reduced to 25 per cent. Duty on Hiace vans without seats is 60 per cent whereas customs duty on buses, trucks and pick-up vans is also 60 per cent.
Importers of cars up to 1300 cc have to pay a 120 per cent customs duty in addition to 12.5 per cent sales tax on the value of the vehicle. For 1600cc, the duty is 150 per cent and 12.5 per cent sales tax.
According to general conditions of import, vehicles more than two years old are not allowed to be imported under the personal baggage and gift scheme category. However, any vehicle whether new or old can be imported under the Transfer of Residence scheme.
Any person importing a vehicle to Pakistan under the personal baggage scheme should be abroad for 180 days within the seven months preceding the date of application.
The minimum stay abroad requirement for gifting vehicles or importing under transfer of residence shall be 700 days, of which at least the last six months preceding the date of application must be spent continuously abroad.
A vehicle can be gifted only to a family member residing in Pakistan.
Takeaway season for used vehicles:* The duty on vehicles of 1800cc and above has been reduced from 200 per cent to 150 per cent.
* Customs duty on a Hiace van with seats reduced to 25 per cent. Duty on Hiace vans without seats is 60 per cent whereas customs duty on buses, trucks and pick-up vans is also 60 per cent.
* Vehicles more than two years old are not allowed to be imported under the personal baggage and gift scheme
* Any vehicle whether new or old can be imported under the Transfer of Residence scheme
Gulf News
