The government of Japan has launched a crackdown on the clearance of imported cars on forged and fake documents in Pakistan.

According to the media reports, the Embassy of Pakistan in Tokyo said that it is taking all legal measures both in Pakistan and Japan to address the matter under applicable laws and to mitigate any possible unease that might be caused to legitimate trade.

Japan is the main source of used-car imports to Pakistan. Cars are imported in Pakistan under baggage rules or gift scheme as commercial imports are not allowed.

Recently, Customs in Karachi recently unearthed frauds regarding clearance of used-vehicles on the basis of fake/forged documents.

It may be recalled that the Federal Board of Revenue (FBR) had also imposed additional taxes on the selling of new cars within 90 days of purchase.

Detailing about the new tax imposed, FBR said that the government has decided to impose close to Rs200, 000 additional withholding tax on the purchase of new cars.

For 600 to 1000cc cars, there will be an additional WHT of Rs50, 000, while for 2000cc cars there will be Rs100,000 tax. While WHT of Rs 200,000 will be charged on any car above 2000cc.

According to FBR the new tax imposed to control ‘On Money’ practice and to meet the tax target set for the FBR by the government. The tax has already been approved by the federal cabinet.