Govt abolishes used car imports through ‘personal baggage’

Islamabad's Commerce Minister Jam Kamal Khan announced on Wednesday that the government has abolished the Personal Baggage Scheme for importing used vehicles, following approval from the Economic Coordination Committee and the federal cabinet. The decision came after the scheme was found to be misused for commercial purposes. The minister addressed National Assembly questions raised by MNA Dr Shazia Sobia, who inquired about the government's move to prevent commercial misuse of the scheme and sought details of policy changes.

The Commerce Ministry's written response detailed the revised policy, which requires imported vehicles to meet minimum safety, environmental, and regulatory standards similar to those for commercial vehicle imports. The timeframe for importing vehicles under the retained Gift and Transfer of Residence schemes has been extended from two years to three years.

Additionally, vehicles imported through these schemes will be non-transferable for one year. The minimum stay-abroad requirement has been raised to three years, with a minimum of 850 cumulative days of stay. The condition that a vehicle must be imported from the same country as the sender's residence will only apply to the Transfer of Residence Scheme.

These policy adjustments were made after consultations with various stakeholders, including the Ministry of Overseas Pakistanis and the Human Resource Development Ministry. The government aimed to facilitate overseas Pakistanis importing vehicles for genuine personal use, while ensuring benefits were only granted to those genuinely deserving and discouraging any misuse of the schemes.

The ministry noted that the decision to abolish the Personal Baggage Scheme and tighten conditions on the retained schemes could lead to a decline in overall vehicle imports, though it was too early to assess the full impact.

Finance Minister Muhammad Aurangzeb confirmed during a separate question and answer session that there is no provision for importing vehicles in Pakistan without paying duties and taxes. This statement was made in response to MNA Moin Aamer Pirzada's inquiry about the existence of regions in Pakistan where vehicles could be imported duty-free.