Govt allows commercial import of used vehicles under IMF deal

ISLAMABAD: Pakistan has fulfilled yet another tough condition of the International Monetary Fund (IMF) by allowing the commercial import of vehicles older than five years, effective from October 1, ARY News reported.

The Ministry of Commerce has formally permitted the commercial import of old vehicles, which will now be processed strictly through banks.

Officials confirmed that a 40 percent regulatory duty will be imposed on such imports, with the Federal Board of Revenue (FBR) expected to issue the notification for the levy shortly.

The Engineering Development Board (EDB) has also set stringent standards for commercial imports. Only vehicles that secure international certification will be eligible for entry into Pakistan.

Furthermore, rules governing monthly depreciation or reduction in the assessed value of old vehicles will be announced soon, authorities added.

Also Read: IMF ‘urges’ Pakistan for speedy clearance of FBR-related court cases

Earlier, Pakistan and the International Monetary Fund (IMF) began their second review talks on the ongoing loan program, with discussions centering on revenue shortfalls, pending tax litigation, and fiscal reforms.

According to Federal Board of Revenue (FBR) sources, the IMF was briefed on the reasons behind missed tax collection targets.

The Fund urged Pakistani authorities to expedite court cases involving the FBR, particularly super tax disputes. Officials said the FBR remains hopeful of recovering nearly Rs200 billion if decisions are made in its favor.

The government delegation informed the IMF mission that floods had caused estimated tax losses of around Rs60 billion.

The FBR also requested leniency in revenue targets, though the IMF has yet to give a final response and instead pressed for measures to broaden the tax net.

Sources revealed that the enforcement plan to cover the revenue shortfall includes decisions on super tax cases.

However, if court rulings go against the FBR, alternative measures will be required to secure Rs200 billion.