A.Rafay
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KARACHI: The revision of age limit for import of used cars from five years to three years may hamper the collection of customs duty as authorities collected Rs7.14 billion as duty on the import of Complete Built Units (CBU) vehicles during the first four months of the current fiscal year, said sources.
Customs officials believed that the collection of customs duty may badly affect under the head of imported used cars. The Economic Coordination Committee (ECC) of the Cabinet on November 22 decided to reduce the age limit of imported used cars from five to three years from December 15. The decision was welcomed by manufacturers but criticised by motor dealers.
A data of imported vehicles during the first four months of the current fiscal year revealed that around 20,509 units were imported during July-October as around Rs11.4 billion was spent on the purchase of foreign manufactured vehicles.
The data also revealed that as much as 19,129 cars and jeeps up to 1000CC and above 3000CC and four-wheelers were imported at Rs9.73 billion, in which the customs authorities collected Rs6.62 billion as duty, said sources.
The import of trucks and spraying lorries stood at 536 during JulyOctober, valuing Rs488.655 million with the paid duty of Rs146.59 million, they said. The import of such vehicles were high as sources in customs said that importers fraudulently imported a large number of trucks and other heavy vehicles in the guise of spraying and sprinkle lorries.
The government has provided a facility of lower rates on import of sprinkle and spraying lorries through the Import Policy Order 2009.
However, after realising the misuse of the facility on import of sprinkle or spraying lorries, the Federal Board of Revenue (FBR) early this month banned the import of fabricated vehicles. Sources in the FBR said that the national exchequer incurred losses of billions of rupees due to misuse of this facility.
The fresh data of import of CBU vehicles revealed that 361 CBU units were imported under Transfer of Residence (T&R Scheme) on which the authorities collected Rs100 million as duty and taxes.
Under personal baggage scheme, a total of 19,112 CBU units were imported during the first four months of the current fiscal year and Rs6.2 billion was collected as customs duty.
The FBR is pursuing a gigantic revenue collection target of Rs2,381 billion during this fiscal year and so far it is behind the tax target set for the first four months of the current fiscal year, said sources.
Customs officials said that such decision of downward revision would further bring down the customs duty collection in the coming months.
Rs7.14 billion duty collected on import of vehicles in four months - thenews.com.pk
Customs officials believed that the collection of customs duty may badly affect under the head of imported used cars. The Economic Coordination Committee (ECC) of the Cabinet on November 22 decided to reduce the age limit of imported used cars from five to three years from December 15. The decision was welcomed by manufacturers but criticised by motor dealers.
A data of imported vehicles during the first four months of the current fiscal year revealed that around 20,509 units were imported during July-October as around Rs11.4 billion was spent on the purchase of foreign manufactured vehicles.
The data also revealed that as much as 19,129 cars and jeeps up to 1000CC and above 3000CC and four-wheelers were imported at Rs9.73 billion, in which the customs authorities collected Rs6.62 billion as duty, said sources.
The import of trucks and spraying lorries stood at 536 during JulyOctober, valuing Rs488.655 million with the paid duty of Rs146.59 million, they said. The import of such vehicles were high as sources in customs said that importers fraudulently imported a large number of trucks and other heavy vehicles in the guise of spraying and sprinkle lorries.
The government has provided a facility of lower rates on import of sprinkle and spraying lorries through the Import Policy Order 2009.
However, after realising the misuse of the facility on import of sprinkle or spraying lorries, the Federal Board of Revenue (FBR) early this month banned the import of fabricated vehicles. Sources in the FBR said that the national exchequer incurred losses of billions of rupees due to misuse of this facility.
The fresh data of import of CBU vehicles revealed that 361 CBU units were imported under Transfer of Residence (T&R Scheme) on which the authorities collected Rs100 million as duty and taxes.
Under personal baggage scheme, a total of 19,112 CBU units were imported during the first four months of the current fiscal year and Rs6.2 billion was collected as customs duty.
The FBR is pursuing a gigantic revenue collection target of Rs2,381 billion during this fiscal year and so far it is behind the tax target set for the first four months of the current fiscal year, said sources.
Customs officials said that such decision of downward revision would further bring down the customs duty collection in the coming months.
Rs7.14 billion duty collected on import of vehicles in four months - thenews.com.pk
