ISLAMABAD: The Ministry of Finance, Economic Affairs, Statistics and Revenue has taken a decision on Tuesday for waiving off duty on trading of classic and vintage cars. It is announced that a flat rate of $5,000 will be imposed on the imports of these classics, without considering the engine capacity.
The Federal Government has excluded vintage cars & jeeps from the umbrella of taxes including customs duty, regulatory duty, additional customs duty, federal excise duty, sales tax and withholding tax, instead there will only be a flat rate of $5000 per unit.
According to Federal Board of Revenue (FBR), the notification issued for exemption of duty is explained as the vintage, classic cars and jeeps signifies old and used vehicles, that is under PCT Code 87.03 of the First Schedule to the Customs Act, 1969, only produce prior to January 01, 1968.
It is not sure that Pakistani government has taken this initiative for the first time in order to help the automotive industry, because earlier a notice was issues related to import of cars older than three years were proscribed and a grave tax was also imposed on vehicles more than 1300cc.
According to sources it is projected, that if the ministry granted approval then there is a chance of rise of new auto related industry in Pakistan, where these type of automobiles can be tuned, serviced and then sold on high profitable rates.
