FBR Temporarily Exempts Import Duty Payment Conditions for Imported Vehicles

Federal Board of Revenue (FBR) officials said that custom duty conditions have been relaxed on car imports categorized as gifts, personal baggage, and imports made under a residence transfer scheme.

This exemption has only been granted to cars imported between 4th of December, 2017 and 9th of January, 2018 – the importers can only avail this relaxation if they prove that the respective payments to import the vehicle were made from a bank account owned by a Pakistani national.

So Why Temporarily?

Retrospectively, around 6,000 vehicles were imported without any proper bank details, these vehicles have been stopped at the ports so that the Custom’s department can apportion relative payments and exact it.

The relaxation may help importers to get around 4,000 cars cleared out of total 6,000 currently stuck at the ports.

However, under the new law, the importers had to show proof of payment using remittances in order to get the vehicles cleared. The Ministry of Commerce and Textile made the proposal to levy custom duties on imported vehicles – specifically those falling under transfer of residence schemes, personal baggage, or gift scheme categories. The proposal further stated that this remittance shall be exacted only if the payment is made from an account of a Pakistani national, either a local bank account or from the orderer’s Pakistani family member’s account in case the primary payer’s account is inoperative or non-existent.

Due to this policy change, the 6,000 orders made through bank accounts with improper details had to be halted to receive the respective payments.

Following Pakistan Custom’s advise, FBR exempted tax on the aforementioned categories of imports in order to help clear these 6,000 vehicles stuck at the ports.

Reportedly, these 6,000 imports were made before 9th of January, 2018 which is why this time frame has been selected.

In a letter, the Model Collectorate of Customs (MCC) suggested the FBR to devise a better mechanism to deal with payments on such imports, specifically the orders which were made before 9th of January


  • I am sure some tycoon would have contacted the FBR elites to do so. So the tycoon can easily clear the vehicles on his side and others should still pay the extra burden. Sudden halts should have never happened in the first place. Legally ANNOUNCE and then LEGALLY APPLY; is the legitimate approach!

  • hahah

    when will the amnesty scheme launch

  • Leshariq

    Pahli baat tou yeh ha ka AP Pakistan ka Kisi Bhi bank say bahir payment lagwa he Nhi sakty non-pakistani ko. FBR walay sab hum ko mil k Pagal bana rahay han. Ek he chez mein business tha woh Bhi band kar dia . **** NS

  • Shoaib Ali

    Kuch time baad is par bhi report ajaye gi ye saray kaam hakumati hi hotay hain Yousuf Raza Gilani ke betay nay bhi apni gaariyan isi tarah nikalwayin thin Mercedez or sport cars. Ye itnay tenure walay saray inhi ke lye hotay hain hamare lye nahi

    • Imran

      Used cars are not a burden on the economy as an oversea Pakistani purchase tge car from abroad with the money they havewith them nand send it to Pakistan. They send the car here instead on money an when the car comes here the money comes or the value of the money comes here and also the car is registered in customs and excise department which tax taxes and yearly excise taxes. And then there are many people involved in this trade as port drivers clearing agents and their office staff, car dealers and their office staff, denters , painters, mechnic, labour, spare part dealers, landlords of the property which all these people have rented, taxation departments all the the subsidiaries. Therefore its a very big step which the government has taken aganist a lot of people and its invisibly harming a lot of people. On the other hand the public suffer as their demand is not met as there is shortage in market which in turn allows local manufactures to charge high prices. Also this trade provides huge revenue to the government. Therefore for the betterment of the public the government should allow used car imports and make an easy procedure and allow 10 years imports so that the masses in the public benifit.

      • Aftab Kayani

        Very well said lot of foreign exchange can come to the country this way I think our finance minister should do something about this

  • Imran

    Used cars are not a burden on the economy as an oversea Pakistani purchase tge car from abroad with the money they havewith them nand send it to Pakistan. They send the car here instead on money an when the car comes here the money comes or the value of the money comes here and also the car is registered in customs and excise department which tax taxes and yearly excise taxes. And then there are many people involved in this trade as port drivers clearing agents and their office staff, car dealers and their office staff, denters , painters, mechnic, labour, spare part dealers, landlords of the property which all these people have rented, taxation departments all the the subsidiaries. Therefore its a very big step which the government has taken aganist a lot of people and its invisibly harming a lot of people. On the other hand the public suffer as their demand is not met as there is shortage in market which in turn allows local manufactures to charge high prices. Also this trade provides huge revenue to the government. Therefore for the betterment of the public the government should allow used car imports and make an easy procedure and allow 10 years imports so that the masses in the public benifit.
    Therefore this trade must continue in the interest of the public..