ISLAMABAD: Federal Board of Revenue (FBR) here on Wednesday has withdrawn a major incentive by reducing the depreciation rate from 2 percent to just 1 percent on the import of used cars and other vehicles imported by overseas Pakistanis.
This decision has been taken in the light of decision taken by Economic Coordination Committee (ECC) to benefit the auto industry of the country. This decision would result in an increase in the prices of used cars and other vehicles being imported by the overseas Pakistanis under Gift Scheme, Transfer of Residance Scheme and Personal Baggage Scheme.
Despite remarkable contributions in strengthening of the Pakistan’s foreign exchange reserves position by remitting billions of dollars each year, the overseas Pakistanis have been deprived of tax and duty concession on the import of used cars, said an official.
With the formal issuance of notification, the tax authorities would allow depreciation of just 1 percent instead of 2 percent while calculating taxes and duties on the import of used cars by the overseas Pakistanis. sajid chaudhry, Daily Times, 15/1/2009