Pakistani expats in Oman cheer as rule tweak makes sending car home easy

Overseas Pakistanis who wish to export their cars back home should take the opportunity to do so, as the government of Pakistan has permitted the import of three-year-old cars.

The Trade Policy and Customs rules allow import of both new and used vehicles up to three years, from year of manufacturing, into Pakistan. The export of cars can be done under the categories of personal baggage, transfer of residence and gift schemes once in two years.

“New vehicles can be imported freely by anyone, under the generally applicable import procedures and requirements, similar to any other goods, on payment of applicable duty and taxes. Used vehicles can only be imported by Pakistani nationals under any of the three schemes: transfer of residence, gift and personal baggage,” according to the conditions laid down in the Import Trade Policy and the structure of taxes under the Customs Act, 1969, Income Tax Ordinance, 2001, Sales Tax Act, 1990, and Capital Value Tax on import of vehicles.

According to the new rules, the owners or local recipients of all new and used vehicles will pay duties and taxes supported by a bank encashment certificate, showing conversion of foreign remittances into local currency.

“The news has definitely made my day, as I have been wanting to export a car as a gift to my mother for her birthday for a year now, but the customs authorities did not have the finalised payment mechanism under which importers can get their cargo cleared,” said Khurram Ali Khan, a resident of Karachi based in Muscat.

The vehicle can only be sent as a gift scheme to a family member and a resident in Pakistan.

“Authorised personnel include parents to children, children to parents, either of the spouses, sister to sister or brother and brother to brother or sister,” stated the Import of Vehicles Taxpayer’s Facilitation Guide Brochure December 2010 generated by the Federal Board of Revenue, Government of Pakistan.

Another Pakistani resident based in Muscat was also thrilled to hear about the export of three-year-old cars, as earlier it used to be two-year-old ones.

“I can’t be happier with this news as I am getting married in four months and will be permanently settling in Pakistan. I bought a brand new car in 2016 and wasn’t willing to leave it behind as the return on sales is much less than I was expecting,” he said, adding, “With this new rule and ease on clearance at the port, I am definitely taking the car with me.”

Earlier, over 7,000 imported used cars were given the go-ahead to be released from ports. While some cars were stuck at the Karachi port waiting to be picked up, an equal number were due to reach the port in a few days.