ECC approves proposals for commercial import of used vehicles

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday decided to amend relevant provisions of the Import Policy Order, 2022 to allow the commercial import of used vehicles. 

According to a statement issued by the Finance Division ECC considered a summary regarding the commercial import of used vehicles and, after detailed discussion, accorded approval to the proposals. 

Initially only vehicles not older than five years will be permitted until 30th June 2026, after which the vehicle age limit shall stand removed, it added.

Federal Finance and Revenue Minister Muhammad Aurangzeb chaired the ECC meeting virtually from New York. 

The ECC further directed that such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards. 

The ECC also approved the imposition of 40 per cent regulatory duty in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old).

This enhanced duty will remain applicable until 30th June 2026. Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30 as per the recommendations of the Tariff Policy Board.

The statement further read that on another summary moved by the Cabinet Division, the ECC considered and approved a technical supplementary grant of Rs800 million in favour of the Pakistan Virtual Asset Regulatory Authority (PVARA). The ECC’s decisions will now be approved by the federal cabinet.

The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Power Sardar Awais Ahmad Khan Leghari, federal secretaries and senior officials from concerned ministries and regulatory bodies, the statement concluded.