Import
Of
Vehicles
Taxpayer’s Facilitation Guide
Brochure- ___
December 2010
Revenue Division
helpline@fbr.gov.pk
Federal Board of Revenue
0800-00-227, 051-111-227-227
Government of Pakistan
www.fbr.gov.pk
Brochure – Import of Vehicle
Our Vision
To be a modern, progressive, effective, autonomous and credible
organization for optimizing revenue by providing quality service
and promoting compliance with tax and related laws
Our Mission
Enhance the capability of the tax system to collect due taxes through
application of modern techniques, providing taxpayer assistance and by
creating a motivated, satisfied, dedicated and professional workforce
Our Values
Integrity
Professionalism
Teamwork
Courtesy
Fairness
Transparency
Responsiveness
For assistance and information on tax
matters Please contact our help line center
through Toll Free Telephone 0800-00-227
Telephone 051-111-227-227 or 051-111-227-228
Fax 051-9205593
E-mail [email protected] or
Visit our tax facilitation center (located in all major cities) or any tax
office or
Visit our website at www.fbr.gov.pk
Brochure – Import of Vehicle
Revenue Division
Brochure - ____
Federal Board of Revenue
Government of Pakistan
February 2008
Introduction
This brochure provides basic information for the benefit and use of taxpayers
importing vehicle to understand their rights and obligations. The brochure explains in
detail 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.
In this brochure some terms that are not familiar to taxpayers used for the first time
are in italic bold and explained appropriately.
This brochure is to assist the taxpayers and reflects the legal position at the time of
printing. In case of any conflict the legal provisions of the law shall always prevail
over the contents of this brochure.
Comments and suggestions
We welcome your comments about this brochure and your suggestions for future
editions. You can e-mail us at [email protected]
OR
You can write to us at the following address:
Facilitation and Tax Education,
Federal Board of Revenue,
Constitution Avenue,
Islamabad
Brochure – Import of Vehicle
IMPORT OF VEHICLES
1. The Trade Policy and Customs rules
allow import of vehicles into Pakistan.
Both new and used vehicles can be
imported.
2. New vehicles can be imported freely by
any one, under the generally applicable
import procedures and requirements,
like any other goods, on payment of
applicable duty and taxes.
3. Used vehicles can only be imported by
Pakistani Nationals under any of the
following three schemes (certain
restrictions and conditions apply):
Transfer of residence
Gift
Personal baggage
4. The terms and conditions applicable for the
import of vehicles under the above
mentioned three schemes are tabled
below:
Table – I
S.
Applicable terms and conditions
No
.
Transfer of Residence
Gift Scheme
Personal Baggage
Scheme
Scheme
a.
Once in two years (700 days after the date of Bill of Entry / Goods
Declaration of an earlier import under any of the three schemes)
b.
Cars meant for
Cars meant for
Cars meant for transport
transport of
transport of
of passengers excluding
passengers
passengers,
busses, vans, trucks &
excluding busses,
excluding busses,
pickups, 4X~4 vehicles
vans, trucks &
vans, trucks &
Agricultural tractors,
pickups, 4X4
pickups, 4X4
bulldozers, laser land
vehicles
vehicles
levelers and combined
Agricultural tractors,
Agricultural tractors,
harvesters
bulldozers, laser land
bulldozers, laser
levelers and
land levelers and
combined harvesters
combined
harvesters
Motor cycles and
scooters
c.
Not more than Three
Not more than
Three
Not more than Three
years old model
years old model
years old model (year of
(year of
(year of
manufacturer)
manufacturer)
manufacturer)
d.
A minimum of 700
A minimum of 700
A minimum of 180 days
days stay out-side
days stay out-side
stay out-side Pakistan
Pakistan during the
Pakistan during the
during the immediately
immediately
immediately
preceding seven months
preceding three
preceding three
from the date of
years from the date
years from the date
application
Brochure –
Import of Vehicle
of application
of application
e.
Not applicable
A family member
Not applicable
normally resident in
Pakistan i.e.:
i. By parents to children
(adult)
ii. By children (adult) to
parents
iii. By either of the
spouse
iv. By sister to sister or
brother
v. By brother to brother
or sister
Brochure – Import of Vehicle
f.
i. Goods declaration
in the prescribed
form as per
Annexure I
ii. Purchase receipt
of the vehicle
iii. Bill of lading, if
applicable, dated not
later than 120 days
from the arrival of the
applicant
iv. Attested photo
copy of the passport
or Pakistan origin
card (Original will be
required at the time
of clearance)
i. Goods declaration in
the prescribed form as
per Annexure I
ii. Purchase receipt of
the vehicle
iii. Bill of lading showing
name and address of
the consignee
iv. Attested photo copy
of the passport of
Pakistan origin card of
the donor
v. CNIC of the donee
i. Goods declaration
in the prescribed
form as per
Annexure I
ii. Purchase receipt
of the vehicle
iii. Bill of lading, if
applicable, dated
not later than 120
days from the arrival
of the applicant
iv. Attested photo
copy of the passport
or Pakistan origin
card (Original will be
required at the time
of clearance)
Regular import of new vehicles
5. Two different regimes are en-force for levy of
the taxes payable on import of vehicles,
under the above schemes. In this facilitation
material, these are referred as Special
Regime and Normal Regime.
Special Regime covers:
Certain specified used vehicles
imported under the aforesaid three
schemes.
Normal Regime covers:
New vehicles imported under the
aforesaid three schemes;
Used vehicles imported under the
aforesaid three schemes but are not
covered under the special regime; and
SPECIAL REGIME
6. Under the “Special Regime” the taxes are
levied on the basis of engine capacity,
irrespective of the value of the vehicle and
the optional or additional accessories. The
accumulated amount of taxes, covering
Custom Duty, Sales Tax, Income Tax and
Capital Value Tax based on engine capacity,
on import of the used vehicles meant for
transport of passengers, are tabled below:
TABLE – II
Type of vehicle (Used vehicles
Taxes
meant for transport of
passengers)
Upto 800 CC (Asian makes
US$ 4,400
only)
Brochure – Import of Vehicle
Upto 800 CC (Other than
US$ 6,600
Asian makes)
From 801 CC to 1000 CC
US$ 5,500
From 1001 CC to 1300 CC
US$ 11,000
From 1301 CC to 1500 CC
US$ 15,400
From 1501 CC to 1600 CC
US$ 18,700
From 1601 CC to 1800 CC
US$ 23,100
excluding jeeps (Asian makes
only)
For enquiries about applicable duties and
taxes on vehicles other than those meant for
transport of passengers, please contact
FBR‟s Help Line Center.
7. The amount of taxes stated in Table – II,
above, are reduced on account of
depreciation in value of the vehicle at the rate
NORMAL REGIME
10. Under the “Normal Regime” the taxes
are levied on the basis of both engine
capacity and value of the vehicle.
11. Normal regime covers the import of
following categories of vehicles:
New vehicles imported under the
aforesaid three schemes;
Used vehicles imported under the
aforesaid three schemes but are not
covered under the special regime; and
Regular import of new vehicles.
12. The rates of taxes under the normal
regime on import of vehicles meant for
transportation of passengers are tabled
below:
TABLE – III
Type of
Customs
Sales
Income
Special
vehicle
Duty on
Tax on
Tax on
Federal
(meant for
Value
Duty
Sales
Excise Duty
transport of
Assessed
paid
Tax paid
on duty
passengers)
(See
value
value
paid value
Para 13
below)
Used vehicles (Not covered under special regime)
of 1% for each completed month subject to a
maximum of 50%.
Each completed month for depreciation is
calculated from the date of first
registration of the vehicle abroad to the
date of entry into Pakistan.
8. The amount of taxes stated in Table – II above,
are payable in US Dollars or equivalent
amount in Pak Rupees converted at the rates
prevailing at the time of making the payment
of the taxes.
9. The following example would explain how the
amount of taxes payable are determined
under the above mentioned Special Regime:
Particulars
Example-I
Example-
Example-III
Transfer of
II
Personal baggage
Residence
Gift
scheme
Engine
800 CC
1299 CC
1700 CC
capacity
(Asian
(Any
(Asian Make)
Make)
Make)
Date of
st
st
st
1 Jan,
1 July,
1
May, 2007
registration
2005
2006
abroad
Date of entry
th
th
th
20 July,
20 July,
20
July, 2007
into Pakistan
2007
2007
Period
30 Months
12
02 Months and 20 days
between first
and 20
Months
registration
days
and 20
and entry
days
into Pakistan
Completed
30 Months
12
02 Months
months
Months
Depreciation
30%
12%
2%
@ 1% per
month
Admissible
30%
12%
2%
depreciation
(restricted to
50%)
Full amount
US $ 4,400
US $
US $ 23,100
of taxes
11,000
Reduction in
US $ 1,320
US $
US $
taxes to the
(30% of
1,320
462
extent of the
US $
(12% of
(2% of US $ 23,100)
amount of
4,400)
US $
depreciation
11,000)
Actual
US $ 3,080
US $
US $ 22,638
amount of
9,680
taxes
payable
From 1601
75.00%
17.00
5.00%
1.00%
CC to 1800
%
CC (Other
than Asian
makes)
Brochure – Import of Vehicle
From 1601
75.00%
17.00
5.00%
1.00%
CC to 1800
%
CC (Jeeps)
From 1801
100.00%
17.00
5.00%
1.00%
CC and
R.D.
%
above
50.00%
New Cars (Regular import or under aforesaid three schemes)
Upto 800 CC
50.00%
17.00
5.00%
1.00%
%
From 801 CC
55.00%
17.00
5.00%
1.00%
to 1000 CC
%
From 1001
60.00%
17.00
5.00%
1.00%
CC to 1300
%
CC
From 1301
60.00%
17.00
5.00%
1.00%
CC to 1500
%
CC
From 1501
75.00%
17.00
5.00%
1.00%
CC to 1600
%
CC
From 1601
75.00%
17.00
5.00%
1.00%
CC to 1800
%
CC
From 1801
100.00%
17.00
5.00%
1.00%
CC and
R.D.
%
above
50.00%
13. The value of a vehicle for the purposes of
levy of above taxes is determined as under:
c. In addition, the followings incidental
charges and costs are added:
i. Value of optional / additional
accessories;
ii. Local agent‟s commission;
iii. Ocean/air freight calculated from the
country where originally
manufactured;
iv. Insurance in the country where
manufactured or where first registered
(in case of non-availability of
insurance memo an amount
equivalent to 1% of C&F value);
v. Landing charges at the rate of 1% of the
CIF value;
vi. Other incidental charges;
14. In case of used vehicles, the value
determined as above, is reduced on account
of depreciation of the vehicle at the rate of
1% for each completed month subject to a
maximum of 50%.
a. Export model - FOB value at the time of its
manufacture, as certified by the
manufacturer or its authorized local agent.
b. Domestic model - FOB value for similar
export model certified by the manufacturer
or its authorized agent, plus 5% of the
C&F value.
Each completed month for depreciation is
calculated from the date of first registration
abroad of the vehicle to the date of entry into
Pakistan.
15. The following examples based on notional
values, would explain how the value of a
vehicle is determined for the purpose of levy
of taxes, under the above-mentioned Normal
Regime.
Particulars
Example-I
Example-II
Example-III
Example-IV
Transfer of
Gift Scheme
Gift Scheme
Personal
Residence
OR
Baggage
Regular Import
Engine capacity and make
1800 CC
1600 CC
1800 CC
2200 CC
European
Any make,
Any make,
Any make,
make,
New Car.
Used car
Used Car.
Used car
FOB value as certified by the manufacturer at
US $ 1,000
US $ 1,000
US $ 1,000
US $ 1,000
the time of its manufacturer
Optional / additional accessories
US $ 100
US $ 100
US $ 100
US $ 100
Local agent‟s commission
US $ 100
US $ 100
US $ 100
US $ 100
Freight from country originally manufactured
US $ 100
US $ 100
US $ 100
US $ 100
e.g. (Osaka, Japan to Karachi- Pakistan)
Brochure – Import of Vehicle
Sub- total(C & F value)
US $ 1,300
US $ 1,300
US $ 1,300
US $ 1,300
Insurance @ 1% of C & F value
US $ 13
US $ 13
US $ 13
US $ 13
Sub- total (CI F value)
US $ 1,313
US $ 1,313
US $ 1,313
US $ 1,313
Landing charges @1% of CI F value
US $ 13
US $ 13
US $ 13
US $ 13
Other incidental charges, if any
US $ 74
US $ 74
US $ 74
US $ 74
Value assessed
US $ 1,400
US $ 1,400
US $ 1,400
US $ 1,400
Date of first Registration abroad
st
NA
st
th
1
Feb, 2005
1
Feb, 2006
20 April,
2007
Date of Entry in to Pakistan
th
NA
th
th
20
July,
20
July,
20 July,
2007
2007
2007
Period between first registration and entry into
29 Months
NA
17 Months
3 months
Pakistan
& 20 days
& 20 days
Completed months
29 Months
NA
17 Months
3 months
Depreciation @ 1% per month
29 %
NA
17 %
3%
Admissible depreciation (Restricted to 50%)
29%
Nil
17%
3%
Reduction in value to the extent of admissible
US $ 406
Nil
US $ 238
US $ 42
depreciation
(29% of US $
(17% of US $
(3% of US $
1,400)
1,400)
1,400)
Depreciated value in US $ for the purpose of
US $ 994
US $ 1,400
US $ 1,162
US $ 1,358
levy of duty
Prevailing exchange rate
US $ 1 =Rs.
US $ 1 =Rs. 85
US $ 1 =Rs.
US $ 1 =Rs.
85
85
85
Depreciated value in Pak Rupees for the
Rs. 84,490
Rs. 119,000
Rs. 98,770
Rs. 115,430
purpose of levy of duly
16. Once the value is determined the amount of taxes payable are calculated as under:
Value determined of 1600 CC new vehicle
Under gift scheme (Example II)
Rs. 119,000
Custom Duty - applicable rate 75%
(75% of Value determined
Rs. 119,000
Rs. 89,250
Sales Tax - applicable rate 17%
(17% of
Value determined
Rs. 119,000
plus Custom Duty
Rs. 89,250
Total
Rs. 2,08,250
Rs. 35,402
Income Tax - applicable rate 05%
Brochure – Import of Vehicle
(05% of
Value determined
Rs. 119,000
plus Custom Duty
Rs.
89,250
plus Sales Tax
Rs.
35,402
Total
Rs. 243,652
Rs. 12,183
Special Federal Excise Duty - applicable rate 1.00%
(1.00% of
Value determined
Rs. 119,000
plus Custom Duty
Rs.
89,250
Total
Rs. 208,250
Rs. 2,083
Total Taxes
Rs. 138,918
Each tax rupee that you pay helps Pakistan improve its standing, economically
and socially, in the nations of the world.
If you are not satisfied
– Tell us.
If you are satisfied
– Tell others
GOOD DECLARATION. GD-1
ORIGINAL COPY
CUSTOMS FILE NO.
ANNEX-I
1.EXPORTER‟S/CONSIGNOR‟S NAME AND ADDRESS
2.DECLARATION TYPE
3.VALUATION
4. PREVOUS REF
METHOD
5.PAGE 1 OF PAGES
6.CUSTOMS OFFICE
7. BANK CODE
8.IGM/EGM REFERENCE &
8a. INDEX
DATE
10. IMPORTER‟S/CONSIGNEE‟S/PASSENGER‟S NAME &
ADDRESS
9.DRY PORT IGM/EGM REFERENCE & DATE
9a. INDEX
11. DECLARANT (OTHER THAN EXPORTER/IMPORTER)
12(a)TEL:
13.C.H.A.L. NO
JOB NO
14.NTN
15.STR NO. / PASSPORT NO.
16.WAREHOUSE LICENCE NO.
17. TRANSACTION TYPE
19.LC / DD NO. AND DATE
20. COUNTRY OF DESTINATION
18.DOCUMENTS ATTACHED E-FORM NO.& DATE
INV [ ]B/G
BL/AWB/ [ ]IT EXMP
21.CURRENCY NAME & CODE
30. MARKS/CONTAINER NOs.
CO [ ]
22.VESSEL/MODE OF
23.BL, AWB, CON- NO. &
24.EXCHANGE RATE
Brochure – Import of Vehicle
TRANSPORT
DATE
25.PORT OF SHIPMENT
26.PAYMENT TERMS
27.PORT OF DISCHARGE
28. PLACE OF DELIVERY
29.DELIVERY TERMS
31.NUMBER OF PACKAGES
32.TYPE OF PACKAGES
33 (a)GROSS
34.VOLUME M3
WT (KG)
35.GENERAL DESCRIPTION OF GOODS
(b) NET WT
0
(KG)
36. IN THE CASE OF DANGEROUS GOODS, INDICATE HAZARD CLASS/DIV; FLASHPOINT (IN C )
37.ITEM NO.
38. QUANTITY
38(b) No of
39. CO CODE
40.SRO NO.
41. HS CODE
01
(a) Unit type
units
42.ITEM DESCRIPTION OF GOODS
46.LEVY
47.RATE
48. SUM PAYABLE
42(a.)
(PKR)
43. UNIT VALUE
44. TOTAL VALUE
45.CUSTOMS VALUES
(PKR)
DECLARED
ASSESSED
DECLARED
ASSESSED
DECLARED
ASSESSED
37.ITEM NO.
38. QUANTITY
38(b) No of units
39. CO CODE
40.SRO NO.
41. HS CODE
02
(a) Unit type
42.ITEM DESCRIPTION OF GOODS
46.LEVY
47.RATE
48. SUM PAYABLE
42(a.)
(PKR)
43. UNIT VALUE
44. TOTAL VALUE
45.CUSTOMS VALUES
(PKR)
DECLARED
ASSESSED
DECLARED
ASSESSED
DECLARED
ASSESSED
49.SRO/TEST REPORT NO & DT
50. FOB VALUE
54. LANDING CHARGES @%
51. FREIGHT
55. OTHER CHARGES
52. CFR VALUE
56. ASSESSED VALUE
53. INSURANCE %
57. TOTAL REBATE CLAIM/ASSMNT U/S 81
58. MACHINE NO. &
59. REVENUE
60.AMOUNT (PKR)
61. A.O‟S SIG. &
DATE
RECOVERED
STAMP
64. I/We declare that the above particulars are
CODE | LEVY
true & correct
62. P.A. SIG. & STAMP
DECLARANT‟S NAME & DESIGNATION SIG &
DATE
65. C/F/D NO. & DATE
TOTAL:
63. OUT OF CHARGE
SIG. & STAMP
66. BANK STAMP
Continued.
GOODS DECLARATION. GD-I
INQUIRY
FOR BOND SECTION’S USE
ADVICE/AMENDMENT /REJECTION
(WITH GROUNDS)
REGISTRATION BY PORT AUTHORITIES
REGISTRATION BY CUSTOMS SHED STAFF
BOOK & PAGE NO
DATE
WHARFAGE CHARGES
______________ _____
A) DATE OF RECEIPT
STORAGE CHARGES
______________ _____
B) TIME OF RECEIPT
GATE PASS
______________ _____
C) REGN. NO
EXAMINATION REPORT BY CUSTOMS SHED STAFF
A) LOCATION----------------------------------
B) INSPECTED THE WHOLE COMPRISING
--------CASES
C) EXAMINED ----------
% SELECTED CAES BEARING
NOS---------------------------------------------------------------------
D) CONTAINER NOS
---------------------------------------------------------------------------
E) MARKS AND NUMBERS
---------------------------------------------------------------------------
F) IGM/EGM ----------------------------------------------------------
INDEX------------------------------------------------------------------
PHYSICAL EXAMINATION
DISCREPANCIES
SPECIFICATION
QUANTITY
ORIGIN
PCT HEADING
WEIGHT (GROSS/NET)
DATE OF MFG/EXPIRY-------
OTHERS
OBJECTIVE VERIFICATION
YES NO
DECLARATIONS AS PER PACKING LIST
HAS THE VALUE BEEN APPRAISED
IF YES, MENTION THE VALUE________________________
IS SAMPLE FORWARDED TO GROUP/LAB
ANY ADDITIOANL EXAM REPORT
SHEET (ATTACHED)
Other Facilitation and Tax Education Material Produced
by Federal Board of Revenue
Computer software Income Tax Assistant Version 1.0 for the tax year 2003
Income Tax Assistant Version 1.1 for the tax year 2004
Income Tax Assistant Version 1.1 for the tax year 2005
For computing chargeable income from salary, property, business, capital gains
and other sources, exclusions from income, taxable income, applicable gross
income tax, reductions, credits etc. and income tax payable / refundable
For generating related computations, returns, certificates, statements, wealth
statement and its reconciliation
Publications Brochure – 001 Universal self-assessment and record keeping
Brochure – 002 Business accounts, documents and records
Brochure – 003 Taxation of income from salary
Brochure – 004 Taxation of income from property
Brochure – 005 Collection and deduction of tax at source
Brochure – 006 How to fill in income tax forms
Brochure – 007 Charities
Brochure – 008 Income Tax Appeals
Brochure – 009 Taxation of income from dividend
Brochure – 010 Depreciation, initial allowance and
amortization of capital expenditure
Brochure – 011 The mechanism of Alternate Dispute Resolution
Brochure – 012 Taxpayer’s Charter
Brochure – 013 Import of vehicles
Quarterly Review
Year Book
Under Publication Pakistan Baggage Rules
Taxation of capital gains
Taxation of income from profit on debt
Incomes subject to final taxation
Sales Tax guide
F A T E
“Facilitation And Tax Education “
Is the Key to
Voluntary Compliance
And
Voluntary Compliance
Is the Key to
“Better Revenues”
Grievance
Brochure – Import of Vehicle