ISLAMABAD: Diplomatic missions and embassies in Pakistan are now permit to sell their used imported vehicles. Locally after two years’ expiration without paying any duties and taxes.
The Federal Board of Revenue (FBR) in Pakistan has introduced a new “special category” for the sales of imported diplomatic vehicles. Under this category, if a diplomatic vehicle is sold or dispose of within two years from the date of importation. 100 percent of duty and taxes will be levied at the prevailing rates of exchange and duties/taxes on the value determined in foreign currency at the time of importation of vehicle.
However, if the diplomatic vehicle is sell f after the expiry of two years. from the date of importation, no duty and taxes will be levy.
Previously, imported diplomatic vehicles in Pakistan were allow to be sell under three categories: Category-I, Category-II, and Category-III. The new “special category” has been add alongside these existing categories.
Moreover, According to SRO 577(I)/2006, the Federal Government has exempt vehicles. It includes motor cars falling under specific headings of Chapter 87 of the First Schedule to the Customs Act, 1969. That are imports into Pakistan by diplomatic representatives or missions of foreign governments.
In addition, these vehicles are exempt from customs duty. Other taxes when sold or disposed of in the country to someone entitled to import. The same without paying customs duty and other taxes under this notification.
However, prior permission from the Ministry of Foreign Affairs is requires for any sale, transfer, or disposal of such motor vehicles in Pakistan. The Ministry issues the sale permission for each vehicle.
Ministry of Foreign Affairs authorization on Vehicles sales
The Ministry of Foreign Affairs will provide authorization for local sales on payment of customs duties and taxes as per a specific schedule, which depends on the category of the country of origin of the diplomat. The reciprocity of this schedule is determine by the Ministry of Foreign Affairs and approved by the Foreign Secretary, with copies of each authorization sent to the FBR. For used vehicles, the duty rates and other taxes applicable will follow the laid-down notification.
