The Federal Board of Revenue (FBR) has clarified that only overseas Pakistanis are eligible to import vehicles under the gift or transfer of residence schemes, rejecting media reports suggesting widespread under-invoicing or irregularities in luxury car imports. According to the FBR, Pakistani nationals living abroad, including dual citizens, can bring old and used vehicles into Pakistan through three approved schemes: personal baggage, gift scheme, and transfer of residence.
Under these rules, imported used cars should not be older than three years, while other vehicles can be up to five years old. The structure of duties and taxes applicable under these schemes remains unchanged, and motorcycles or scooters can only be imported through the transfer of residence scheme.
Certain groups are excluded from these privileges, including students receiving remittances from Pakistan, non-earning members of the overseas Pakistani community, and individuals who have imported, received as a gift, or transferred a vehicle in the past two years.
In a move to encourage environmentally friendly vehicles, the government offers a 50 percent exemption on duties and taxes for hybrid electric vehicles (HEVs) with engine capacities up to 1800cc, and a 25 percent exemption for HEVs ranging from 1800cc to 2500cc. The FBR also outlined the duties for vehicles of Asian makes, which vary according to engine capacity, ranging from $4,800 for cars up to 800cc to $27,940 for vehicles between 1601cc and 1800cc, excluding jeeps.
The FBR emphasized that only overseas Pakistanis can benefit from these import schemes and clarified that no outward remittance of foreign exchange from Pakistan is involved. The clarification was issued in response to media reports claiming undervaluation of luxury vehicles, including a 2023 Toyota Land Cruiser allegedly assessed at an extremely low value. The FBR rejected these claims, stating the vehicle was actually assessed at Rs10.05 million (Dh130,000), with duties and taxes totaling Rs47.2 million (Dh612,000).
The FBR highlighted the expansion of its Faceless Customs Assessment (FCA), launched in December 2024, which aims to facilitate trade, reduce human interaction, and prevent misuse of the import system for personal gain.
The board underlined that the import of used vehicles by eligible overseas Pakistanis has been occurring in a regulated manner, even prior to the FCA system, and that all assessments under FCA have been conducted at fair market values without causing any revenue loss. The clarification reinforces that these schemes are strictly limited to overseas Pakistanis and operate transparently under government regulations.
