Dar reviews support mechanisms for expats

Import of up to 5-year-old used vehicles allowed with 40% extra tariff

Business Recorder

3 hours ago

Business Recorder

Import of up to 5-year-old used vehicles allowed with 40% extra tariff

ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025

SAPM highlights plan for zero transport emissions

Business Recorder

5 hours ago

Business Recorder

SAPM highlights plan for zero transport emissions

ISLAMABAD: Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan, Friday, while highlighting the government's plan to reach net zero transport emissions by 2060 has reaffirmed the government's commitment for sustainability, for innovation and industrial competitiveness. Addressing the dissemination workshop on New Energy Vehicle Policy 2025-30, he said: 'This policy aims to enable 30 percent of all new vehicles to be electric by 2030, and the ambition of reaching net zero transport emissions by 2060.' He said that for the skill development National Vocational and Technical Training Commission (NAVTTC) also coordinating to train around 10,000 apprentices. The policy ensures that citizens are not just consumers, but beneficiaries. Buyers are protected through a new legal framework covering information transparency, currency risk sharing, and performance guarantees. This transition is projected to save 2.07 billion litres of fuel annually, amounting to nearly $1 billion in foreign exchange savings. Additionally, the policy is expected to reduce carbon emissions by 4.5 million tons and cut healthcare-related costs by $405 million per year. The government had already issued 61 licenses for manufacturing of motorbikes and three-wheelers while two licenses for the manufacturing of electric vehicles. Many international companies are interested in energy vehicle investment in the country. He emphasised that the policy is not just an environmental commitment but also an economic imperative. Moreover, the policy enables the productive use of 126 TWh of surplus electricity, which would otherwise go to waste. To encourage adoption, the government is offering consumer subsidies including: Rs65,000 for electric two-wheelers, Rs400,000 for electric three-wheelers and Rs15,000 per kilowatt-hour for electric four-wheelers besides supporting and funding installation of electric charging stations. Additionally, 40 fast-charging stations are expected to become operational on highways by the end of 2025, improving infrastructure for EV users. Akhtar also announced that provinces are being encouraged to offer free NEV registration to support nationwide adoption. He emphasised the policy's role in promoting industrial growth and local manufacturing, noting that 57 local manufacturing certificates have been issued and over 90 percent localisation has already been achieved in electric motorcycles and rickshaws. International players are showing growing interest in Pakistan's NEV sector, which Akhtar described as a positive signal for foreign investment and technology transfer. The policy is built on following five key pillars: (i) Subsidies for consumers; (ii) Tariff protections for local industry; (iii) Infrastructure development including charging stations;(iv) Quality and safety standards aligned with global benchmarks, and (v) Institutional support and regulatory frameworks. Haroon Akhtar concluded by reaffirming the government's commitment to a sustainable transport system that is equitable, forward-looking, and globally competitive. The country faced dual challenge of greenhouse gas emissions while energising its industrial base. Transport accounts for a significant share of our emissions, while our energy and manufacturing sectors remain underutilised in key value chains. The NEV policy brings these two realities together, not as a problem, but as a platform and a national opportunity. The NEV policy is a smart industrial strategy which not simply subsidise, it prioritises accountability, technological advancement, and market fairness which based on five main pillars. Copyright Business Recorder, 2025

Import of up to 5-year-old used vehicles allowed with 40pc extra tariff

Business Recorder

5 hours ago

Business Recorder

Import of up to 5-year-old used vehicles allowed with 40pc extra tariff

ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025

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Import of up to 5-year-old used vehicles allowed with 40% extra tariff

SAPM highlights plan for zero transport emissions

Import of up to 5-year-old used vehicles allowed with 40pc extra tariff

Dar reviews support mechanisms for expats

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Import of up to 5-year-old used vehicles allowed with 40% extra tariff

SAPM highlights plan for zero transport emissions

Import of up to 5-year-old used vehicles allowed with 40pc extra tariff

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