Govt decides to tighten duty free cars’ import
Moen Khan
The PTI government has tightened duty-free import of cars for disabled persons following the opposition of two key ministers.
Earlier, the government had allowed the import of cars once in five years. However, it allows importing once in ten years period.
It has also increased the income bracket of disabled persons from Rs—100,000 to Rs.200 000 per month to qualify for the scheme.
The opposition of freed duty import scheme
During the ensuing discussion in a meeting of ECC, Minister for Railways Sheikh Rasheed opposed the duty-free import scheme for disabled persons.
He said that although the scheme was in favour of disabled persons. However, it may result in any misuse if the policy for importing duty-free cars for disabled persons is relaxed.
Adviser to the Prime Minister on Commerce and Investment Razak Dawood supported the Minister for Railways’ views. He suggested some quantitative restrictions in this regard to avoid any misuse.
Hafeez Sheikh questions import of only 5 cars
Advisor to Prime Minister on Finance Hafeez Sheikh has raised a question over only 5 cars during the last three years. He directed Commerce Ministry to probe it.
Hafeez Sheikh, who also heads the economic coordination committee (ECC), had observed the government allowed 408 cars during the last three years (FY 2017-18 to April 2020). However, disabled persons imported only 5 cars under the Disabled Persons’ Scheme.
Previous Policy of import
The government allowed disabled persons to import a brand new car or three-wheeler motorcycles once in five years. They could import without paying customs duty. Disabled persons from across the country have been approaching different public forums against this policy.
They approached the President’s office, Chairman Senate, the Prime Minister’s Delivery Unit (PMDU), the Ministry of Human Rights, and the Ministry of Commerce. They said that the policy in vogue has been unsuccessful due to the high prices of cars.
Moreover, they said the majority belonged to the middle and lower-middle classes. Therefore, they could not purchase a car.
The Federal Board of Revenue also supported the proposal to allow the import of used and old cars, along with new cars. The Ministry of Industries & Production recommended that “specialized vehicles may be allowed import under the scheme.
However, the government should encourage local industries to manufacture customized vehicles for disabled persons on concessionary rates.
Ministry of Commerce proposed amendments in the existing policy and procedure for the import of cars. It had proposed to increase from 1350cc to 1500cc cars, as fuel-efficient hybrid cars and above categories.
