The Federal Board of Revenue (FBR) has liberalized policy for the local sales of imported vehicles by embassies and diplomatic missions.
The FBR has amended S.R.O. 577(I)/2006 through a notification SRO.923(I)/2023 issued on Tuesday.
Under the new “special category” on local sales of diplomatic vehicles in Pakistan, if sold or otherwise disposed of before the expiry of two years from the date of importation, 100 percent of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation.
If the imported diplomatic vehicle is sold or otherwise disposed of after the expiry of two years from the date of importation, no duty and taxes shall be leviable, the notification added.
Presently, imported diplomatic vehicles can be sold in Pakistan under Category-I; Category-II and Category-III. After these categories, a special category has been added under the name of “special category”.
Under S.R.O. 577(I)/2006, the Federal Government has exempted vehicles, including motor cars, falling under respective headings of Chapter 87 of the First Schedule to the Customs Act, 1969, imported into Pakistan free of customs duty and other taxes by diplomatic representatives or missions of foreign governments in Pakistan and subsequently sold or otherwise disposed of in the country to a person entitled to import the same without payment of customs duty and other taxes under this notification, from so much of customs-duty and other taxes as is in excess of that leviable.
