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Cabinet rejects exemption for vintage cars despite political pressure

Proposal aimed to allow a one-time release of vintage cars stuck at ports
Participants walk past cars at the end of Motor Rally in Islamabad in October, 2017. AFP/File
Participants walk past cars at the end of Motor Rally in Islamabad in October, 2017. AFP/File

The Federal Cabinet has declined to exempt vintage cars that are stuck at ports, imported by the elite, from the current Import Policy Order, despite pressure from political figures, Business Recorder reported while citing sources.

On December 10, the commerce ministry informed the cabinet about a previous summary submitted on July 25, 2023. It was in response to a directive from the Cabinet Committee established on October 11, 2022, seeking to relax import/export conditions.

The proposal aimed to allow a one-time release of vintage cars stuck at ports, contingent on the payment of duties as outlined in the FBR’s SRO 833(1)/2018, along with an additional 10% surcharge on the applicable duties. But the cabinet did not approve this proposal on August 9, 2023.

Moreover, the cabinet was informed that the Sindh High Court, in its ruling on November 13, 2024 directed the Cabinet Division to revisit the issue. The court instructed that the cabinet must deliberate on the possibility of permitting one-time imports of vintage cars and provide a detailed decision, including reasons, within three weeks

The issue of vintage car imports was addressed in the Senate Standing Committee on Commerce, where Senator Saleem Mandviwalla urged the commerce ministry to resubmit the proposal to the cabinet.

The ministry provided background on the situation, explaining that a summary to permit the import of vintage cars was initially submitted to the Cabinet in May 2018. But the proposal could not proceed because the necessary SRO had not been approved by the Law and Justice Division, leading to instructions for the Ministry to present it to the next elected government.

Meanwhile, the Federal Board of Revenue issued SRO 833(1)/2018 on July 3, 2018, establishing a cumulative duty of $5,000 per unit for the import of vintage or classic cars. But the regulation has not been implemented due to a prohibition on vintage car imports outlined in the existing Import Policy Order from the commerce ministry.

In January 2019, the Commerce Ministry proposed an amendment to the IPO through a summary submitted to the Economic Coordination Committee (ECC) to facilitate the import of vintage cars.

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