rewrite this title with different wordingPM Directs FBR to Halt Misuse of Car Import Scheme

The Pakistani government is taking steps to address a loophole in the import of used vehicles. Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to tighten controls on used car imports brought in under schemes meant for overseas Pakistanis – the baggage scheme.

The issue lies in the misuse of programs like the “personnel baggage scheme,” “transfer of residence,” and “gift scheme.” These programs allow returning residents and those receiving gifts from abroad to import used cars at concessionary rates. However, some individuals are exploiting these schemes for commercial gain.

The Loophole

Here’s how the misuse happens: Cars are imported under these schemes using passports of overseas Pakistanis, often without their knowledge or consent. These cars then get immediately flipped in the commercial market for profit. This not only undermines the spirit of the scheme but also creates an unfair advantage for those exploiting it.

The government is tackling this issue on multiple fronts:

FBR Scrutiny: The FBR will implement stricter checks on used car imports. This could involve verifying passport details, travel history, and ensuring the imported vehicle aligns with the purpose of the scheme (e.g., personal use for a returning resident).

Legal Changes: The government is exploring legal changes to prevent businesses from misusing passports of overseas Pakistanis. This could involve stricter penalties for passport misuse and requiring additional documentation for commercial importers.

Potential Sales Restriction: One proposal under consideration is to restrict the local sale of used vehicles imported under these schemes for a period of, say, three years. This would discourage the “buy-to-flip” mentality and ensure the cars are genuinely used for personal purposes.

A more robust system for used car imports will benefit everyone. It ensures the intended beneficiaries – returning residents and those receiving gifts – have genuine access to the scheme. Also, it prevents businesses from exploiting the system and gaining an unfair edge over legitimate car dealers.

Moreover, by regulating the used car market, the government can control potential price fluctuations and ensure a more stable market environment. The government’s efforts to control used car misuse are a positive step towards a more transparent and fair import system.