Latest news with #Rs500bn
Business Recorder
11 hours ago
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40% extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Business Recorder
13 hours ago
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40pc extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Yahoo
5 days ago
- Business
- Yahoo
Ninety One to complete Sanlam Investments UK transfer
Ninety One is set to finalise the transfer of Sanlam Investments UK's active asset management business to Ninety One UK today (16 June). The move is part of a broader agreement between Ninety One and Sanlam, positioning Ninety One UK as the primary active asset manager for a portion of Sanlam Investments UK's assets under management. Initially announced in November 2024, the agreement designates Ninety One as the primary active investment manager for Sanlam's single-managed local and global products. The alliance also formalises a 15-year relationship between the two firms through various operative agreements concluded in March 2025. As part of the arrangement, Sanlam will receive 125.7 million shares in Ninety One, translating to a 12.3% equity stake. Excluding ARC Financial Services Investments, Sanlam's effective shareholding in Ninety One will be approximately 8.9%. Additionally, Sanlam will become an anchor investor in Ninety One's international private and specialist credit strategies. Ninety One, originally from South Africa with a global footprint, hopes to benefit from preferred access to Sanlam's distribution network. The alliance is expected to expand Ninety One's market reach and accelerate its international private credit offerings. Announcing the deal in November, Ninety One founder and CEO Hendrik du Toit said: 'We are looking forward to a long and fruitful relationship with Sanlam, a business with a powerful brand and significant scale in South Africa. 'Our experience and expertise are complementary. This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders.' Last week, India's Shriram Group launched its wealth management venture by collaborating with Sanlam Group, focusing on serving India's affluent and high-net-worth individuals. The equally shared joint venture, branded Shriram Wealth, targets Rs500bn ($5.84bn) in assets under advice and plans to onboard 500 wealth management experts within five years. "Ninety One to complete Sanlam Investments UK transfer " was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Shriram Group, Sanlam establish wealth management venture in India
Shriram Group has entered the wealth management sector through a partnership with South Africa's Sanlam Group, targeting India's affluent and high-net-worth individuals (HNIs). The 50:50 JV, named Shriram Wealth, aims to achieve Rs500bn ($5.84bn) in assets under advice (AUA) and recruit 500 wealth management professionals over the next five years. Shriram Wealth will offer a range of services, including mutual funds, alternative investment funds, portfolio management, lending solutions, protection plans, global investment opportunities, and legacy planning. Operations will begin in the top ten cities, with plans to expand to ten more cities within a year, focusing on both metropolitan and emerging Tier 2 and Tier 3 markets. The JV will cater to three client categories, including mass affluent clients with assets between Rs1m and Rs20m, high-net-worth individuals with assets from Rs20m to Rs250m and ultra-high-net-worth individuals with assets exceeding Rs250m. The management has recruited professionals with 15 to 20 years of experience in banking and non-banking sectors, aiming to leverage their client base and diverse product offerings to explore new demographics. Shriram Wealth managing director and CEO Vikas Satija said: 'Currently, only about 15% of financial assets in India are professionally managed, compared to 75% in mature global markets.' Last month, Sanlam formed a partnership with Shriram Asset Management Company (Shriram AMC), a division of the Shriram Group. Shriram AMC offers a range of financial services, including commercial vehicles, consumer finance, life and general insurance, stock broking, chit funds, and financial product distribution. "Shriram Group, Sanlam establish wealth management venture in India" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
28-01-2025
- Business
- Zawya
India's bond yields ease after RBI's liquidity measures: IFR
India's 10-year benchmark eased to 6.65%, close to a three-year low, after the Reserve Bank of India announced a slew of measures to ease tight liquidity conditions in the financial system. "Even the corporate bond yields eased three to five basis points across the curve following RBI's liquidity boosting move," a DCM banker said. The central bank said it will hold open market operations for up to Rs600bn (US$6.93bn) in three tranches of Rs200bn each on January 30, February 13 and February 20. It will hold a 56-day variable rate repo (VRR) auction, where the banks borrow short-term funds, for Rs500bn on February 7 and a dollar/rupee buy/sell swap auction of US$5bn for a tenor of six months on January 31. "This response is likely to be perceived by the markets as RBI swinging into multi-pronged action on the liquidity front rather than ad-hoc support," Radhika Rao, economist at DBS Research, wrote in a note. "Persistent unsterilised dollar sales to defend the currency as well as seasonal drivers had magnified the liquidity squeeze, with the deficit widening sharply to Rs3trn in recent sessions. Expectations were that this deficit would have persisted (and further widened) this quarter, which is also a fiscal year-end." RBI will inject liquidity into the system in the range of Rs500bn to Rs2trn through these measures, depending on the requirement, Barclays said in a note today. Some economists feel that India's central bank may relax monetary policy at its February 7 meeting following the government's budget announcement on Saturday for the fiscal year starting on April 1. "By announcing these measures to address liquidity concerns, the RBI, in our view, is setting stage for monetary easing in the upcoming February policy meeting," Barclays wrote. The RBI did an open market operation of over Rs100bn on January 17 and also announced measures to use the rupee for settlement of cross-border transactions through liberalisation of foreign exchange management (FEMA) regulations to ease the pressure on the currency. The US dollar has gained 3.3% against the rupee in the past six months and 1.1% since the beginning of the year. It rose as high as Rs86.6460 on January 13 and was trading at Rs86.5220 today.
