Maximum limit of depreciation enhanced for import of used cars
Federal Board of Revenue (FBR) has enhanced the maximum limit of the depreciation from the existing 50 per cent to 60 per cent on the import of old, used and second-hand cars, says a press release issued Wednesday.
The decision has been taken in line with a similar decision taken by the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on 01.03.2011 when the apex body while considering the summary regarding "Rationalizing the Prices of Locally Manufactured Cars" decided to enhance the maximum limit of the depreciation to 60 per cent on the import of cars.
In order to implement the FCC's decision, the Revenue Division, Federal Board of Revenue issued Customs Notification No. SRO 275(1)/2011 dated 26th June, 2011 amending the parent notification No. SRO 577(1)/2005 dated 6th June, 2005. Customs General Order No. 02/2011 dated 26th June, 2011 has also been issued to modify Customs General Order No 14/2005, dated 6th June, 2005. Accordingly, the maximum limit of the depreciation has been enhanced to 60% from existing 50% on the import of old, used and second hand cars.