Custom Duties and Taxes on Imported Cars in Pakistan: A Complete Guide

Importing cars from Dubai to Pakistan is an exciting opportunity for car enthusiasts and business owners alike. However, understanding the complexities of custom duties and taxes is essential to avoid unforeseen costs. In this guide, we will break down the key aspects of custom duties and taxes on imported cars in Pakistan, helping you navigate the process with ease. Whether you’re importing a luxury vehicle or a compact car, this guide will provide comprehensive information on the import duty on cars in Pakistan, applicable regulations, and much more.

Car Import Policy in Pakistan

The car import policy in Pakistan is governed by the Federal Board of Revenue (FBR) and other regulatory bodies. There are specific rules and policies that control the importation of cars into the country. Vehicles can be imported under three primary schemes: Personal Baggage, Gift Scheme, and Transfer of Residence.

• Personal Baggage Scheme: This allows Pakistani citizens returning from abroad to bring in cars as part of their baggage.
• Gift Scheme: Pakistani expatriates can gift cars to family members residing in Pakistan.
• Transfer of Residence: Citizens who have lived abroad for at least two years can import vehicles under this scheme.

Conditions for Car Import in Pakistan

1. Age Restrictions: Cars imported under the schemes mentioned above must meet specific age limits. For instance, cars cannot be older than three years, while other vehicles like SUVs must not exceed five years in age.
2. Eligibility: Only Pakistani nationals residing abroad, including dual nationals, can benefit from these schemes. Non-earning members and students receiving remittances from Pakistan are ineligible to import cars under these rules.
3. Types of Cars: Used and new vehicles can both be imported, but the duty structure remains the same across the different schemes.

Understanding these import rules will help you stay within the law and avoid hefty penalties when importing cars from Dubai or any other country.

Import Duty on Cars in Pakistan

One of the most critical factors to consider when importing cars from Dubai to Pakistan is the import duty on cars in Pakistan. The duties and taxes vary depending on the vehicle’s engine capacity (measured in cubic centimeters, or cc), its age, and the car’s origin.

Here’s a breakdown of duties based on engine capacity:

• Up to 800 cc: Duty & taxes around $4,800 (PKR 1,339,200)
• 801 cc to 1000 cc: Duty & taxes around $6,000 (PKR 1,674,000)
• 1001 cc to 1300 cc: Duty & taxes approximately $13,200 (PKR 3,682,800)
• 1301 cc to 1500 cc: Duty & taxes near $18,590 (PKR 5,186,610)
• 1501 cc to 1600 cc: Duty & taxes around $22,550 (PKR 6,291,450)
• 1601 cc to 1800 cc: $27,940 (PKR 7,795,260) (excluding Jeeps)

Factors Affecting Custom Duty

1. Engine Capacity: Higher engine capacity leads to higher customs duties and taxes.
2. Vehicle Type: Cars, SUVs, hybrid electric vehicles (HEVs), and motorcycles are treated differently.
3. Car’s Age: Older vehicles enjoy depreciation benefits in duties.
4. Custom Duty Calculator: FBR provides an online custom duty calculator to estimate how much duty you will owe based on the vehicle’s specifications. This is an invaluable tool when importing cars from Dubai to Pakistan.

It’s important to remember that custom duties vary not only based on engine size but also depending on the vehicle’s country of origin.

FBR Car Import Taxes

The Federal Board of Revenue (FBR) imposes several types of taxes on imported vehicles in Pakistan. These include:

• Customs Duty: Calculated as a percentage of the car’s CIF (Cost, Insurance, Freight) value. This is typically 10% of the vehicle’s CIF value.
• Sales Tax: Set at 17% of the CIF value.
• Additional Customs Duty: For vehicles with an engine size above 1000cc, an extra 5% of the CIF value applies.
• Excise Duty: Cars over 1300cc also attract excise duty, which is generally 10% of the CIF value.
• Registration Fee: For cars, this is a fixed fee of PKR 10,000.

The FBR also offers tools like the custom duty calculator Pakistan to help taxpayers estimate their total costs before importing their vehicles. This tool takes into account several variables, including exchange rates, engine size, and the date the customs duty is paid.

SRO for Imported Cars in Pakistan

The Statutory Regulatory Order (SRO) is a document that provides detailed guidelines on import car regulations in Pakistan. SROs are periodically updated to reflect changes in government policies and are crucial for individuals looking to import vehicles.

• The SRO for imported cars in Pakistan lays out the procedures for paying duties, receiving exemptions, and other important guidelines.
• Hybrid Electric Vehicles (HEVs) benefit from specific exemptions under the SRO, receiving up to 50% off duties for cars with an engine size of up to 1800cc. HEVs with engines between 1800cc and 2500cc enjoy a 25% reduction.

Before importing a car, it’s recommended to consult the latest SROs to ensure compliance with the latest rules and regulations.

Duties on Luxury Cars in Pakistan

Importing luxury cars such as BMW, Audi, and Mercedes-Benz comes with higher duties and taxes compared to smaller vehicles. Duties on luxury cars in Pakistan typically include:

• Higher Custom Duties: Luxury cars, particularly those with engine sizes exceeding 1800cc, attract substantial customs duties.
• Excise Duty: In addition to customs duty, an excise duty of around 10% applies to luxury vehicles.
• Luxury Tax: Some provinces may levy additional taxes on the import of high-end luxury vehicles.

Luxury Car Import Regulations

Luxury car imports also face stricter scrutiny, and the process for customs clearance can take longer due to the higher value of these vehicles. Therefore, it is advisable to consult with import brokers or customs agents who specialize in high-end vehicles.

Excise Duty on Cars in Pakistan

The excise duty on cars in Pakistan is another critical cost to consider when importing vehicles. This tax is imposed on the production or importation of goods, including cars. It typically ranges from 10% to 20%, depending on the vehicle’s engine capacity.

Types of Vehicles and Excise Duty

1. Cars Up to 1300cc: Subject to a lower excise duty, typically around 10%.
2. Cars Over 1300cc: A higher excise duty applies, ranging from 15% to 20%.

Excise duties are an essential part of the overall cost, particularly when importing cars from Dubai to Pakistan. It’s wise to factor this in when calculating the total expenses involved.

How to Use a Custom Duty Calculator Pakistan

For those considering importing cars from Dubai to Pakistan, a custom duty calculator can be a handy tool. Available on the FBR website, this calculator helps you estimate the total duties and taxes payable based on various factors:

• Car’s Engine Size (cc): Input the vehicle’s engine capacity for accurate calculations.
• Manufacturing Year: The age of the vehicle can impact depreciation and taxes.
• Import Date: The month and year of import can affect the duties due to exchange rate fluctuations.

The custom duty calculator Pakistan is an essential tool for anyone importing a vehicle, whether a compact car or a luxury vehicle. It helps in planning and budgeting, ensuring there are no surprises when the car reaches Pakistani soil.

Import Car Regulations Pakistan: What You Must Know

The import car regulations in Pakistan are strict but straightforward. Key points include:

• Documentation: Ensure you have all the necessary paperwork, including proof of ownership, customs declarations, and tax receipts.
• Customs Clearance: All imported vehicles must go through customs clearance, where officials will verify the vehicle’s value and assess duties.
• Regulatory Compliance: Importers must comply with the policies outlined by the FBR and other regulatory bodies, including adherence to emission standards and safety regulations.

Failure to follow the import car regulations Pakistan can lead to penalties or even confiscation of the vehicle.

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Conclusion

Importing cars from Dubai to Pakistan can be a rewarding experience, but it requires careful planning and understanding of the associated duties and taxes. From the import duty on cars in Pakistan to the excise duty and custom tariffs, knowing the costs involved will help you make an informed decision. For those who prefer a hassle-free experience, purchasing from a reputable dealer like **MK Sargodha Motors