The Central Board of Revenue (CBR) has allowed duty and tax-free import of 6x6 trucks under the cover of specialised vehicles for petroleum companies engaged in different projects in Pakistan. The board has amended SRO.678(I)/2004 through a notification issued on Saturday.
Under the amendment, all petroleum sector companies, corporations and organisations including their contractors and sub-contractors and service companies shall be entitled to import machinery, equipment, helicopters, aircraft, drilling bits, drilling and seismic (on or offshore) vessels, drilling rigs, specialised vehicles and 6 x6 trucks for construction, erection, exploration and production of petroleum projects on an import-cum-export basis without payment of duties and taxes.
For the import of 4x4 single or double cabin pickup [6x6 trucks] a committee will be constituted for giving approval. It will comprise nominees of CBR and Pakistan Petroleum Exploration and Production Companies Association.
Sources said that the exemption from customs duty and sales tax was allowed on temporary import of machinery, equipment, specialised vehicles etc which were not manufactured locally, under SRO 367(1)/94. This exemption was given in order to reduce the upfront capital cost of the projects and to attract local and foreign investment for petroleum sector.
The term specialised vehicles however remained a subject of controversy, therefore, while issuing SRO 678(1)/2004, the specialised vehicles were limited only to vehicles covered under Pakistan Customs Tariff (PCT) heading 87.50.
Resultantly, the service companies providing seismic surveys were denied the benefit of SRO 678(1)/2004 on the import of 6x6 trucks which otherwise were classified under PCT heading 87.04.
The service companies were required to import high power vehicles like Dong Feng (6x6) Trucks. Since these vehicles were not covered under PCT heading 87.04, therefore, necessary amendment in the notification was required to include these trucks. Keeping in view this situation, the CBR has permitted temporary import of specialised vehicles through amending SRO.678(I)/2004.