The Economic Coordination Committee recently announced a Rs 90 billion relief package for exporters and auto importers. This included permission to import 50-year-old vintage cars and duty-free import of cars up to 1,600cc.
The Federal Board of Revenue (FBR) has finally granted an exemption of taxes on imports of vintage cars and jeeps that are in excess of $5,000 per unit.
The FBR issued SRO 823(1)/2018, which declares that vintage or classic cars and jeeps have been exempted from all kinds of taxes. These cars will not be charged any of the following taxes:
- Customs duty,
- Additional customs duty,
- Regulatory duty,
- Sales tax,
- Federal excise duty,
- Withholding tax.
The SRO adds,
The Federal government is pleased to exempt vintage or classic cars and jeeps meant for transport of persons on the import thereof from so much of the customs-duty, regulatory duty, additional customs duty, federal excise duty, sales tax and withholding tax as are in excess of the cumulative amount of U.S. dollars five thousand per unit.
It further says,
For the purpose of this Notification, vintage or classic cars and jeeps mean old and used automotive vehicles, falling under PCT Code 87.03 of the First Schedule to the Customs Act, 1969 (IV of 1969), manufactured prior to the 1st January 1968.
The notification was released on July 3, 2018, and you can view it here.