The Financial Coordination Committee on 3rd July announced a Rs 90 billion relief package for exporters and automobile importers. The Committee also gave permission to import 50-year-old vintage cars and duty-free import of cars up to 1,600cc. The Federal Board of Revenue (FBR) has said in a notice that we are pleased to grant an exemption of taxes on imports of vintage cars, classic cars and jeeps that are in excess of $5,000 per unit.
The FBR issued SRO 823(1)/2018, which states that classic or vintage automobiles and jeeps have been granted relief from every type of taxes. These automobiles are not going to be charged any of the net taxes:
- Customs obligation
- Further customs obligation
- Regulatory obligation
- Gross sales tax
- Federal excise obligation
- Withholding tax
The SRO states:
“The Federal government is pleased to exempt vintage or classic cars and jeeps meant for transport of persons on the import thereof from so much of the customs-duty, regulatory duty, additional customs duty, federal excise duty, sales tax and withholding tax as are in excess of the cumulative amount of U.S. dollars five thousand per unit.”
It more adds:
“For the purpose of this Notification, vintage or classic cars and jeeps mean old and used automotive vehicles, falling under PCT Code 87.03 of the First Schedule to the Customs Act, 1969 (IV of 1969), manufactured prior to the 1st January 1968.”