Gwadar, the jewel in Pakistan’s coastal development strategy, is rapidly becoming a focal point for discerning investors and businesses. As the city continues to, its importance on the global stage cannot be overstated.
Recently, the Federal Board of Revenue announced a tax holiday for vehicle imports to stimulate economic activity around Gwadar Port and its Free Zones, representing a significant regional policy development.
This initiative highlights Pakistan’s commitment to transforming Gwadar into a leading trade hub and promotes overseas Pakistani property investment.
Under this scheme, concession holders can import vehicles under PCT Code 9917(3)(iii) of the Pakistan Customs Tariff, specifically designed for vehicles intended for construction and operational purposes related to Gwadar Port.
To initiate the import process, eligible entities must submit a declaration form to the Gwadar Port Authority, signed by the company’s chief executive. This declaration should confirm that the vehicles are essential for legitimate operational activities, ensuring that only those with genuine needs benefit from the tax exemption.
A stringent certification process is in place to ensure compliance. Each vehicle imported must be certified by the chairman of the Gwadar Port Authority, verifying its necessity for the company’s operations. This certification is vital for the issuance of an authorisation letter, which requires approval from the Ministry of Maritime Affairs.
Additionally, the customs clearance process will be overseen by the Gwadar Collectorate, ensuring thorough monitoring of imports. Importers must also commit to maintaining detailed records of all vehicles imported under this scheme, which will be subject to inspection by customs officers, reinforcing accountability.
A critical stipulation of this tax holiday is the restriction on the sale or disposal of imported vehicles without prior approval from the FBR. Any unauthorised transactions within ten years will incur the full payment of applicable duties. However, vehicles sold after ten years will face reduced duty payments, ensuring a balanced approach to regulation.
As Gwadar develops, this tax exemption will meet legitimate operational needs and attract discerning investors seeking new opportunities in this strategically important region. In response, CPIC is creating exclusive communities for overseas Pakistanis, offering real estate investment opportunities expected to appreciate significantly in the coming years.