Tax Relief on Non-Asia Used Cars From Pakitsan

The government has withdrawn exemption of customs duty, sales tax and withholding tax on import of old and used vehicles including cars and jeeps (800cc to 1800cc) of non-Asian makes ie, European, USA, etc. Through SRO (I)/2010, issued on Friday.

The Federal Board of Revenue (FBR) has restricted import of old and used vehicles to the Asian make models for availing exemption of customs duty, sales tax and withholding tax in excess of the cumulative amount specified in US dollars under SRO.577(I)/2005. Sources told Business Recorder that non-Asian makes would be liable to pay statutory rate of customs duty as specified in Pakistan Customs Tariff (PCT).

The reduced rate of duty in US dollars would not be applicable on import of old and used vehicles of non-Asian makes. It would cover all non-Asian countries like Europe and USA. The old and used cars, pickups and jeeps etc having engine capacity of 800cc to 1800cc would be liable to concessionary rate of duties and taxes as specified in the amended SRO.577(I)/2005 for Asian makes, like Japanese, Chinese cars, etc.

Under the amended notification, duties and taxes on import of old and used automotive vehicles (up to 800cc) of Asian makes meant for transport of persons would be $4400, up to 801cc to 1000cc US $5500, from 1001cc to 1300 cc US $11000, from 1301cc to 1500 cc US $15400 from 1501cc to 1600 cc US $18700 and duties/taxes on the import of old and used automotive vehicle from 1600cc to 1800cc from asian makes would be US $23100. 

Govenmnet Reduced Petroleum Prices for March, 2010

The reduction in oil prices was announced at a news conference by Syed Jawad Naseem, a spokesman for the Oil & Gas Regulatory Authority (Ogra).

According to the announcement, the price of petrol has been reduced by 64 paisas to Rs70.57 from Rs71.21 per litre, down 0.9 per cent, and that of High Octane Blending Component (HOBC) has come down to Rs86.06 from Rs86.84 per litre, down by 78 paisas per litre or 0.90 per cent.

Likewise, the ex-depot sale price of kerosene oil has been cut to Rs61.51 from Rs64.07 per litre, down by about 4 per cent or Rs2.56 per litre, while that of light diesel oil has been slashed to Rs59.47 from Rs61.07 per litre, a decrease of Rs1.60 or 2.62 per cent.

The oil marketing companies have separately been asked to reduce high-speed diesel price to Rs70 per litre from Rs71.89, a reduction of Rs1.90 or 2.64 per cent. The diesel prices are notified separately by the oil marketing companies because the product is completely deregulated.

Prices of jet fuels have been reduced by 3.7 per cent to 4.7 per cent. The JP-1, JP-4 and JP-8 have been cut by 4 per cent, 4.7 per cent and 3.7 per cent, respectively. Since July this year, the petroleum prices have been increased four times and reduced thrice.

The Ogra spokesman said the prices had been reduced because of five per cent fall in the international market after adjusting the exchange rate depreciation of about 0.4 per cent during the month of February. He said the landed cost of motor spirit had dropped by 1 per cent, kerosene by 4 per cent, high-speed diesel by 3 per cent, furnace oil by five per cent and crude prices by five per cent in the Gulf market.

According to a separate notification issued by the ministry of petroleum and natural resources, the ex-depot product price announced by Ogra would also include the petroleum levy of Rs10 per litre on petrol, Rs14 per litre on HOBC, Rs6 per litre on kerosene, Rs8 per litre on high-speed diesel and Rs3 per litre on light diesel oil for sales through retail outlets.

In case of direct sales by oil companies, the petroleum levy would be higher than sales through retail outlets. As such, the government would collect Rs12.36, Rs16.79, Rs6, Rs9.50 and Rs3 per litre on petrol, HOBC, kerosene, HSD and LDO, respectively.

Last month, the government had increased petroleum prices by up to 9.4 per cent.

It has already collected more than Rs158 billion in taxes on oil products in eight months (July 2009-February 2010).