Import of used vehicles: FBR clarifies method of assessment of duties, taxes

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has clarified the method of assessment of duties and taxes on the import of old and used vehicles.

In this connection, the FBR has amended the Customs General Order No.14/2005 dated 6th June, 2005 through a CGO 13 of 2012 issued here on Friday.

Through the new CGO, the FBR has clarified the calculation of date on the import of old and used vehicles to remove any ambiguity during clearance of used vehicles.

As per CGO 13 of 2012, there is no change in duties and taxes on the import of old and used cars. There is also no change in the age limit of five years on the import of old/used cars under the said CGO, sources said.

Previously, under the CGO No.14/2005, the depreciation in the assessable value, for the purpose of assessment shall be allowed on the import of used/second hand motor vehicles at the rate of 2 percent per month for each completed month, calculated from the date of first registration abroad upto the date of entry into Pakistan, subject to a maximum of 50 percent.

Through new CGO 13 of 2012, the depreciation in the assessable value, for the purpose of assessment shall be allowed on the import of used/second hand motor vehicles at the rate of 2 percent per month for each completed month, calculated from “1st day of January of the year subsequent to the year of manufacture till the date of shipment as per Bill of landing”, subject to a maximum of 50 percent.

Under the CGO 14 of 2005, the Board has prescribed the procedure for assessment of motor vehicles in order to ensure its uniform application at all Customs stations throughout the country.

Following is the text of the CGO issued here on Friday by the FBR:

The Federal Board of Revenue is pleased to direct that the following further amendment shall be made in Customs General Order No.14/2005 dated 6th June, 2005, namely:-

In the aforesaid CGO, after the words “calculated from” occurring in paragraphs 2, 2A and 2B respectively, the word “the date of first registration abroad upto the date of entry into Pakistan”, shall be substituted with the words, “1st day of January of the year subsequent to the year of manufacture till the date of shipment as per Bill of landing”, CGO added.