Old cars’ import: PM directs FBR to curb misuse of baggage scheme

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to place appropriate checks in budget (2024-25) to control misuse of the import of old and used vehicles.

Sources told Business Recorder that the personnel baggage scheme, transfer of residence and gift scheme are reportedly misused on the import of old and used vehicles.

The FBR has received instructions from the prime minister in this regard. The FBR must ensure to implement the import policy on the import of old and used vehicles in spirit.

The FBR will also propose legal changes to ensure that commercial importers remained unable to misuse the passports of overseas Pakistanis. The vehicles are imported in the name of overseas Pakistanis under baggage scheme and immediately sold in commercial markets.

One of the proposals under examination is to restrict local sale of imported old vehicles in Pakistan for at least a period of three years.

Under the law, the 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 Finance Bill 2024 is expected to check misuse of the policy on the import of old and used vehicles.

The Federal Tax Ombudsman (FTO) has directed the Director, Directorate of Reforms and Automation, Karachi to develop and deploy e-CRF sent by the Collectorate of Customs, Appraisement (West), Karachi enabling the assessing officer to ensure that no goods declaration (GD) is filed on a new passport by the same importer, who has imported a vehicle on his old passport under Baggage, Transfer of Residence and Gift Scheme within the last two years.

The Director, Directorate of Reforms and Automation, Karachi also submitted comments stating therein that the complainant has pointed out delays in clearance of vehicles due to PRC and passport verification and that the matter pertains to the clearance collectorates. The online passport verification is also provided in WeBOC System, however, if there is any other issue, an online CRF may be forwarded for taking necessary action by the Directorate.

Presently, the WeBOC system does not allow filing of GD, if another GD is being filed on the same passport number within two years. However, there is no check if a new GD is filed on a new passport, therefore, verification of the same is carried out through Pakistan Revenue Automation Limited (PRAL), the department stated.

Copyright Business Recorder, 2024