If you are planning to buy imported car, then you have to pay customs duty in dollars, new policy announced on Tuesday.
The economic Coordination Committee meeting was held today under the presidency of Finance Minister Asad Umar.
A new policy was imposed on the purchasing of imported vehicles, under which all the duties, taxes on the imported vehicles whether new or in used condition, will be paid in dollars.
The gift scheme allows expats to bring to home the imported cars and gift it to their friends and families in Pakistan. But this scheme was misused by businessman who turned it into a business by importing multiple cars on one passport for commercial purpose. Imported cars are a burden on the import bills and the value of money against dollar is constantly depreciating.
Official of the ministry of finance told that this decision was taken to support State Bank’s foreign exchange reserves, which stand at $7 billion.
According to the decision expert will have to arrange for dollars and local recipients will require bank encashment certificate, showing conversion of of foreign remittances.
The Export Policy Order 2016 was also amended and Import Policy Order 2016 as porposed by the officials.