The federal government has deferred the approval of proposed amendments to tighten the procedures for importing vehicles under the personal baggage, transfer of residence, and gift schemes.
According to reports, the decision was made after the Economic Coordination Committee (ECC) on Friday raised concerns over the harshness of the measures, which some stakeholders believed could effectively halt all vehicle imports.
The Ministry of Commerce had submitted a summary to amend the current vehicle import procedures, but the ECC postponed its approval due to differing opinions among stakeholders. There were concerns that the proposed changes could lead to unintended consequences and disrupt imports.
The commerce ministry had recommended restricting vehicle imports to those from the country where the sender resides. However, the Federal Board of Revenue (FBR) opposed this proposal, citing that most people live in countries with left-hand-drive vehicles, making the suggestion unfeasible.
Another point of contention was the Ministry of Industries’ proposal to abolish both the gift and baggage schemes, leaving only the transfer of residence scheme intact.
The commerce ministry, on the other hand, sought to retain all three schemes but introduce measures to prevent misuse.
Previously, the commercial import of cars was illegal, and people had been exploiting these schemes to import better-quality cars at competitive rates. To address this, the commerce ministry suggested increasing the intervening period for vehicle imports from two years to three years and imposing a one-year non-transferability condition on imported vehicles.
The most stringent proposed measure was raising the minimum stay abroad for eligibility from 180 days to 850 days for all three schemes. Additionally, the vehicles would need to be registered in the sender’s name abroad to avoid misuse by third parties.
There were also discussions about completely abolishing the gift scheme, a proposal initially suggested by the prime minister several months ago. However, due to the lack of consensus, ECC Chairman and Finance Minister Muhammad Aurangzeb instructed the ministry to conduct further consultations with stakeholders before resubmitting the proposal.
The ECC’s decision highlights the need for balanced policies that prevent misuse while also ensuring fair access to the vehicle import schemes.
