Additional tax on sale of imported cars proposed

ISLAMABAD: The Overseas Investors Chamber of Commerce and Industry (OICCI) proposed the federal government not to exempt imported used cars from regulatory duty and additional customs duty, ARY News reported.

According to the details, the OICCI submitted budget proposals to the federal government in which it asked the centre to continue collecting regulatory duty and additional customs duty on imported used cars.

The OICCI maintained that the proposal aimed at discouraging the import of used cars and protecting the local automobile industry.

“The influx of used cars is affecting the sales of locally manufactured cars,” the OICCI viewed.

It also suggested imposing additional tax on the sale of cars imported under schemes meant for overseas Pakistanis. The OICCI maintained that a large number of cars are being imported under the schemes, taking ‘undue’ advantage of the concessions offered.

The OICCI added that the move would discourage misuse of such schemes for commercial gain. “Policies should be adopted which prioritise the long-term interests of the economy. Measures to regulate imports of used cars must be implemented, it demanded.

Read More: Pakistan relaxes restriction on import of used cars

Earlier on March 28, the federal government amended the Import Policy 2022 and eased the restriction imposed on the import of used cars.

According to the notification, the Ministry of Commerce has allowed the import of used cars with a mileage of 2,000 kilometres.  The govt. had earlier allowed the import of used cars with up to 500 kilometres mileage.

“Under the amended import policy, cars with a mileage of up to 2,000 kilometres will be considered new, the ministry’s notification read.