• The FBR has implemented a new policy for the local sale of imported vehicles by embassies and diplomatic missions.
• The new policy creates a “special category” for vehicles sold or disposed of within two years of importation.
• The new policy is intended to be more flexible and to provide greater certainty to buyers of diplomatic vehicles.

The Federal Board of Revenue (FBR) has implemented a more flexible policy regarding the domestic sales of imported vehicles by embassies and diplomatic missions.

The FBR issued a notification on Tuesday, amending S.R.O. 577(I)/2006 with S.R.O. 923(I)/2023.

According to the new “special category” for local sales of diplomatic vehicles in Pakistan, if these vehicles are sold or disposed of within two years of importation, 100 percent of duty and taxes will be charged based on prevailing exchange rates and duties and taxes determined at the time of importation in foreign currency.

If the diplomatic vehicle imported is sold or disposed of after two years from the date of importation, no duty or taxes will be charged, according to the notification.

A new category called “special category” has been added for the sale of imported diplomatic vehicles in Pakistan, alongside the existing categories I, II, and III.

Also Read

Pakistan Expands Economic Cooperation with Central Asia

Pakistan has initiated a consultative process to join the CAREC CATS project....

Under S.R.O. 577(I)/2006, vehicles falling under Chapter 87 of the Customs Act, 1969, which are imported by diplomatic representatives or missions of foreign governments in Pakistan and later sold or disposed of within the country to eligible importers without customs duty and other taxes, are exempt from excessive customs duty and taxes as specified in the notification.