FBR Grants Tax Relief on Vehicle Imports to Boost Gwadar Port Operations

The Federal Board of Revenue (FBR) has allowed an exemption of duties and taxes on the import of vehicles by China Overseas Ports Holding Company Limited (COPHCL) and its operating companies engaged in the construction, development, and operations of Gwadar Port and Gwadar Tax-free zone area. According to an SRO.82(I)/2025 issued by the FBR on Monday, this regulatory mechanism shall be called the Import of Vehicles by the Concession Holders and their Operating Companies for Construction, Development and Operations of Gwadar Port and Gwadar Free Zone Area Rules, 2025. The eligible importer shall furnish to the Authority or any other officer authorized by it on this behalf details of vehicles intended to be imported for the sole purpose of construction, development, and operations of Gwadar Port and Free Zone Area, and the Authority or the officer authorized by it, as the case may be, shall ascertain actual requirement of such importer based on the nature of activities of the importer strictly in accordance with the scope as defined under PCT Code 9917(3) (iii) of Pakistan Customs Tariff. The Authority shall also take into account vehicles which have already been imported prior to the issuance of the regulatory mechanism in order to regularize the same in terms of their bonafide use and to ascertain future requirements of the concerned importer: Provided that in the case of operational vehicles, a maximum of two motor cars up to 1600cc and three 4×4 pick-ups shall be considered in addition to coaster/bus for workers as per the requirement to be determined by the authority. In order to avail exemption under PCT Code 9917(3) (iii) of Pakistan Customs Tariff, the eligible importer shall furnish to the Authority a Declaration Form duly signed by the chief executive officer of the Company which shall be certified by the Authority, i.e. Chairman of Gwadar Port Authority, in respect of each vehicle imported, certifying in a prescribed manner that such imported vehicles are genuine and bonafide requirements for construction, development and operations of Gwadar Port and Free Zone Area in accordance with the prescribed quotas to be determined by the Authority. The vehicles imported and cleared under these Rules shall not be sold or otherwise disposed of without prior approval of the FBR. In case the vehicles is/are sold or otherwise disposed of without prior approval of the FBR or before the period of ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties and taxes as were applicable at the time of import. In case such vehicle(s) is/are sold or otherwise disposed of after ten years of their importation, the same shall be subject to payment of 50 percent of duties and taxes as were applicable at the time of import.