Federal Board of Revenue (FBR) has recommended to the Commerce Ministry to review its recently announced policy of collection of import duty on the used imported cars in dollars for the benefit of the importers and reducing the bottlenecks in this regard.
Sources in FBR told Online on Thursday that the used cars are being imported under three different schemes including gift, baggage and transfer of residence, and the Commerce Ministry has introduced a new policy of collecting import duty on these used cars and equivalent duty is being collected in US dollars instead of rupees. Under this new policy, the importers have to manage foreign exchange to pay the duty on the imported cars and had to show the documents for bringing the remittances from abroad to pay the duty in dollars.
On the complaints of some of the importers of these cars, for lack of clear system and procedure to bring remittances from abroad to pay the duty on the imported cars, the FBR which is responsible to collect the duty, has written to the Commerce Ministry to review the system and make it more friendly for the benefit of those importers who wanted to pay the duties but facing difficulty due to lack of proper and adequate arrangements.
The FBR officials however said under these schemes, including gift, baggage and transfer of residence, only used cars are being imported and there has been no drastic reduction in the duty on the import of such cars due to introduction of new system, but the importers are facing some difficulties due to this new procedure.
Regarding import of new cars, the sources in FBR said regulatory duty on the import of new cars has been revised and there has been 15 percent increase in regulatory duty on the import of 1800 cc or small cars while the regulatory duty on the vehicles above 1800 cc has been increased from 50 percent to 80 percent.