Karachi, October 8, 2024 – In a major policy development aimed at fostering economic activity around the Gwadar Port and Free Zones, the Federal Board of Revenue (FBR) announced a tax holiday for vehicles imported by entities operating within these areas. Through a draft amendment to the Customs Rules, 2001, the FBR has laid out comprehensive guidelines for the duty and tax exemptions that will apply to eligible companies. The tax concession is set to streamline the import process, promote infrastructural development, and facilitate business activities in Gwadar, one of Pakistan’s most strategically significant regions. The FBR’s initiative, formalized through the issuance of SRO 1621(I)/2024, outlines the rules for importing vehicles free of duties and taxes. These amendments will become part of the main legislative framework after a 15-day public commentary period. The new regulations will be known as the “Import of Vehicles by Gwadar Zone and Free Zone Area Concession Holder and its Operating Companies Rules, 2024.” Eligibility and Import Process The key beneficiaries of this regulatory framework are concession holders and their operating companies. Under the rules, these entities can import vehicles under PCT Code 9917(3) (iii) of the Pakistan Customs Tariff, which governs duty concessions for specified imports. The vehicles imported under this scheme are solely intended for the construction, development, and operational activities of Gwadar Port and the surrounding Free Zones. A declaration form must be submitted by the eligible importers to the Gwadar Port Authority or any other authorized officer, detailing the vehicles intended for import. This declaration, signed by the company’s chief executive, must confirm that the vehicles are required for legitimate operational purposes. The authority will evaluate the actual requirement of the vehicles based on the importer’s scope of activity and will regularize vehicles already imported under previous provisions. Stringent Certification and Authorization To avail the exemption, each vehicle imported under this scheme must be certified by the Gwadar Port Authority’s chairman. This certification…