Pakistan Allows Old Car Imports with 40% Duty
Pakistan Allows Commercial Import of Old Vehicles with New Restrictions
ISLAMABAD — The Ministry of Commerce has given the green light for the commercial import of old vehicles, but under strict conditions. Officials confirmed that all such imports will now be routed through banks and will carry a 40 percent regulatory duty. The Federal Board of Revenue (FBR) is expected to issue a formal notification soon.
The Engineering Development Board (EDB) has also raised the bar for entry, requiring that only vehicles with international certification will be allowed into Pakistan. Authorities added that new rules on monthly depreciation — which reduce the assessed value of older cars — will be announced shortly.
Meanwhile, Pakistan’s economic discussions with the International Monetary Fund (IMF) have entered a sensitive stage. During the second round of review talks on the ongoing loan program, the IMF pressed Islamabad to resolve pending court cases related to the FBR, particularly those involving the super tax.
According to officials, the FBR told the IMF that missed tax collection targets were partly due to last year’s devastating floods, which caused an estimated revenue loss of Rs60 billion. The FBR maintains it could recover nearly Rs200 billion if pending court cases are resolved in its favor.
While Pakistani negotiators requested leniency in revenue targets, the IMF has yet to signal flexibility, instead urging broader tax reforms and expansion of the tax net. Officials warned that if rulings on super tax cases go against the FBR, the government will need to find alternative ways to bridge the revenue gap.
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