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The Federal Board of Revenue (FBR) has clarified the car import rules for overseas Pakistanis. They confirmed that only Pakistanis living abroad, including those in the United Arab Emirates (UAE) and other countries, can import vehicles under the gift or transfer of residence schemes.
Import schemes and conditions
According to FBR rules, Pakistani nationals residing overseas, including dual nationals, can bring old or used vehicles into the country under three schemes. These are personal baggage, gift scheme, and transfer of residence.
However, strict conditions apply. Used sedans, hatchbacks, and other small cars must not be older than three years. Other vehicle types such as Sport Utility Vehicles (SUVs) and Pickup trucks must not exceed five years. The duty and tax structure remains the same under all three schemes. Motorcycles and scooters, however, are only allowed under the transfer of residence scheme.
Eligibility criteria
The eligibility criteria exclude students receiving remittances from Pakistan and non-earning family members of overseas Pakistanis. It also excludes anyone who has imported, gifted, or received a vehicle in the last two years.
Tax benefits for hybrid vehicles
To promote eco-friendly transport, the government offers significant tax benefits on hybrid electric vehicles (HEVs).
Imports up to 1800cc receive a 50pc exemption in duties and taxes. Meanwhile, HEVs between 1800cc and 2500cc get a 25pc exemption. With around nine million Pakistanis living abroad, the scheme serves a large community.
FBR responds to media reports
The FBR’s statement came after rejecting claims of large-scale under-invoicing of luxury vehicles. Pakistan Customs has expanded its Faceless Customs Assessment (FCA) system, launched in December 2024, to streamline trade and reduce human involvement in goods clearance.
Read More: FBR gets powers to access citizens’ internet, call records
Denial of under-invoicing allegations
Responding to one case, the FBR denied that a 2023 Toyota Land Cruiser (LC300) was valued at only Rs17,635. Instead, it confirmed the vehicle was assessed at Rs10.05 million, with Rs47.2 million collected in duties and taxes.
Ensuring transparency and compliance
The FBR stressed that all vehicles are assessed at accurate market values. This is to prevent revenue loss. It also confirmed that these schemes do not involve any outward foreign exchange from Pakistan. They have existed long before the FCA system.
By reinforcing the car import rules for overseas Pakistanis, the FBR aims to maintain transparency, ensure fairness, and promote compliance in vehicle imports.
