Federal Board of Revenue (FBR) has enhanced the maximum limit of the depreciation from 50% to 60% on the import of old and used trucks, agricultural tractors, buses and vans.
The decision has been taken in line with a similar decision taken by the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on April 26, 2011 when the apex body while considering the summary regarding “Rationalising the Prices of Locally Manufactured Cars” decided vehicle to enhance the maximum limit of the depreciation to 60 percent on the import of used/secondhand trucks, agricultural tractors, buses and vans.
In order to implement the ECC’s said decision, the Revenue Division, Federal Board of Revenue has issued Customs General Order No 04/2011, amending the parent CGO 14/2005. Thereby, the maximum limit of the depreciation has been enhanced to 60 percent on the import of used/secondhand trucks, agricultural tractors, buses and vans at the rate of 2 percent per month.
Customs General Order No 04/2011 on Assessment Of Motor Vehicles issued here stated that the Federal Board of Revenue is pleased to direct that the following further amendment shall be made in its Customs General Order No 14/2005, dated the 6th June, 2005, namely: –
In the aforesaid CGO, after paragraph 2A, the following new paragraph shall be inserted, namely; “2B. Notwithstanding any thing contained in paragraphs 2 and 2A above, the depreciation in the assessable value, for the purpose of assessment on the import of used / secondhand vehicles i.e., trucks, agricultural tractors, buses and vans shall be allowed at the rate of 2% per month for each completed month, calculated from the date of first registration abroad up to the date of entry into Pakistan, subject to a maximum of 60%”.