ISLAMABAD: The Federal Board of Revenue (FBR) has instituted a modification to the regulations governing the sale of automobiles imported by diplomats into Pakistan on July 17.
A new classification of vehicle imports, designated as the ‘special category,’ has been introduced, and automobiles within this classification will be liable for 100% of the prevailing duties and taxes if sold within a two-year period following importation. However, if sold subsequent to this two-year period, no duties or taxes will be levied.
This alteration has been enacted through Statutory Regulatory Orders (SRO) 923(I)/2023 and will coexist alongside the previous three classifications.
Categories of vehicular imports by diplomats
The original three categories of vehicular imports by diplomats are delineated in SRO 577(I)/2006. The appraised value of the automobiles imported under these classifications is ascertained utilising the prevailing exchange rate.
The decision as to which classification a diplomat falls under is made by the Ministry of Foreign Affairs, based on arrangements made for Pakistan’s diplomats in other nations, any reciprocity agreements that may be extant, and conventional diplomatic relations between Pakistan and the respective country.
