Tax Exemption For Non Custom Paid Cars Ends on June 30, 2023

Non-custom paid (NCP) car exemption in merged districts of former Federally Administered Tribal Areas (FATA) will end on June 30, 2023, Federal Board of Revenue (FBR) Chairman Asim Ahmed told Public Accounts Committee (PAC) on Wednesday.The issue came under debate after MNA Dr. Nisar Ahmed Cheema stated that more than 100,000 duty-free cars are plying the roads across Pakistan. He added that the majority of such vehicles are used for criminal activity.He highlighted that there are 121,192 NCP cars on the road. “If these vehicles are regularized under an amnesty scheme, the government can generate approximately Rs. 38 billion,” he added.The official informed the forum that FBR seized 14,113 vehicles worth Rs. 36 billion between 2018 and 2022. He added that after auctioning off the non-tampered vehicles, the bureau added Rs. 26 billion to the national exchequer.

Reduction of Import Duties on Used Cars

In a recent meeting, PAC asked the government to reduce import duties on used cars in Pakistan.The committee members reasoned that encouraging car imports would increase competition for local automakers. They added that the move will provide more options for buyers and force local assemblers to strengthen their value chain.The committee learned that local automakers have collected approximately Rs. 217 billion in advance bookings from customers this year. Toyota Indus Motors Company (IMC) received Rs. 112 billion, while Pak Suzuki and Honda Atlas received Rs. 41.66 billion and Rs. 23 billion, respectively, according to the Secretary of Industries and Production.The committee members stated that the carmakers will likely clean up their act once the buyers start resorting to imported cars.