FBR reduces depreciation rate on cars imported by Overseas Pakistanis

ISLAMABAD: Federal Board of Revenue (FBR) here on Wednesday has withdrawn a major incentive by reducing the depreciation rate from 2 percent to just 1 percent on the import of used cars and other vehicles imported by overseas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

One Comment

  1. I think if Government reduces import tax on Cars, than more and more pakistanis will import and that way Govenrnment can have more money as revenue. And Monoply of Local car manufacturers will break. We will see better cars on our roads with good safty features when compared to Mehran and other local cars. Goverment can have more money as they keep wanting more, and people will be happy to pay equalvent to Mehran’s price and get a real car like Nissan, Ford or other cars.

    Tahir Leghari

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