ISLAMABAD – The Economic Coordination Committee, the top government body oneconomic decisions, has approved a new policy on import of vehicles. Underthis policy, the duty and taxes on all imported vehicles, whether new orused, will be paid on dollars.
The personal baggage or gift scheme allows expats to bring home the carsthey bought in a foreign country or gift them to friends or family inPakistan.
But this scheme was misused by traders who have turned it into a businessby importing multiple cars on one passport for commercial purpose.
Importing cars result in drain of dollars and inflate our import bill,something the government can not afford because of a large trade deficit(loss).
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The decision has been taken to support State Bank’s foreign exchangereserves, which stand at $7 billion, said an official of the ministry offinance.
According to the decision, the expats will have to arrange for dollars topay this duty while local recipients will require bank encashmentcertificate, showing conversion of foreign remittances to the localcurrency.
