Here is the latest news for you about the approval of the clearance of banned vehicles. The Economic Coordination Committee (ECC) of the Cabinet has decided to approve the release of banned import consignments related to auto kits and imported cars.
Economic Coordination Committee (ECC) Decision:
According to the resources, Economic Coordination Committee (ECC) meeting to held on Wednesday has decided to consider an eight-point agenda including quantitative restrictions on the import of non-essential and luxury items. In this meeting, the Cabinet has decided to approve the clearance of about 700 vehicles stuck at ports, recently waived taxes of up to 128 percent, and allowed importers to clear their vehicles by paying surcharges. The decision will also apply to other stranded goods that arrived in the country by August 18 and have earlier allowed to cleared but remained at ports.
Federal Ministry of Finance stated:
Miftah Ismail, the federal minister of finance, effectively presided over the ECC meeting from New York. In accordance with the Ministry of Finance’s statement, The ECC considered a summary from the Ministry of Commerce on the release of stopped shipments and ordered that the shipments of previously outlawed goods that arrived in Pakistan up until August 18, 2022, may released at the rate of surcharge.
While lifting the prohibition on August 19, the Cabinet issued instructions for the release of goods held at ports on payment of surcharges and fines ranging from 5% to 100% based on the estimated value of the products. The Cabinet authorized the imposition of a regulatory duty to prevent their import.
Statement Issued By Federal Board of Revenue (FBR):
According to a Federal Board of Revenue (FBR), around 700 vehicles of various engine sizes were delayed at the port, and now they can be cleared on payment of surcharge if the Cabinet approves the ECC’s decision. The clearance of vehicles will generate revenue of over Rs 2 billion for the FBR, which is facing challenges in meeting monthly tax targets.
The cabinet last month approved the release of banned consignments of automobiles, cell phones, and household appliances in exchange for a 100% penalty. The government then targeted 49 tariff lines of automobiles with regulatory duties ranging from 10% to 100% and additional customs duties ranging from 7% to 28%. Up until August 18, certain import tariffs were exempt.
The regulatory duty on new and used cars with engines under 1,000cc that were previously free has targeted with a 100% duty, raising the total import taxes to 150%. Vehicles previously subject to import taxes of 77% will now be subject to taxes of 169% as a result of the government imposing 85% more regulatory duty and 7% more customs duty.
