ISLAMABAD: The Federal Cabinet has rejected a proposal to allow one-time clearance of vintage cars imported by wealthy individuals.
This decision came following a recent meeting where the Cabinet deliberated on the matter after being directed by the Sindh High Court.
The Commerce Ministry first raised the issue in a Cabinet meeting on July 25, 2023, after a directive from the Cabinet Committee on the relaxation of import/export rules.
The Ministry proposed a one-time release of vintage cars stuck at ports, subject to payment of duties and a 10 per cent surcharge, as per FBR’s SRO 833(1)/2018. However, the proposal was turned down on August 9, 2023.
According to Business Recorder, on November 13, the Sindh High Court ordered Cabinet to reconsider the same matter following petitions by car importers seeking release of vehicles. The issue was also discussed in Senate where Senator Saleem Mandviwalla urged Commerce Ministry to resubmit the summary to Cabinet.
The vintage car import issue has been ongoing since 2018. Although FBR had introduced SRO 833(1)/2018, which specified a duty of USD 5,000 per unit for vintage car imports, this never took effect due to the Commerce Ministry’s prohibition under the Import Policy Order (IPO).
Attempts to amend the IPO were rejected in 2019 prompting car importers to seek court intervention.
Some courts ordered the release of the cars, while the High Court of Sindh referred the matter back to the Cabinet, viewing the petitions as requests for a one-time exemption. Despite several legal orders directing the government to reconsider the matter, the Cabinet ultimately rejected the proposal.
In its recent deliberations, the Cabinet highlighted the conflict between FBR’s duty specification and the Commerce Ministry’s import ban under the IPO. The Cabinet concluded that while FBR’s SRO set duties, it did not grant permission for the importation of vintage cars, which had been prohibited by the IPO.
