ISLAMABAD: Federal Board of Revenue (FBR) has imposed 100 percent duty and taxes on sale of vehicles imported by diplomats. The FBR issued SRO 565 (I)/2017 to impose the rate of duty and taxes on sales of vehicles which is subject to permission of ministry of foreign affairs.
This condition has been imposed on the import of second vehicle by diplomat by amending SRO 577(I)/2006.
The SRO stated that second vehicle, if any, would mean the motor vehicle exempted at the time of import from customs duty and other taxes, imported by the diplomat who has his spouse in Pakistan to whom a diplomatic card has been issued by the ministry of foreign affairs for residing in Pakistan.
It further stated that such motor vehicle shall only be sold, or otherwise disposed of with prior permission from the ministry of foreign affairs under intimation to Federal Board of Revenue on payment of leviable duty and taxes as per following:
- If the second vehicle is sold or otherwise disposed of before expiration of two years from the date of importation, 100 percent of duty and taxes shall be leviable as per prevailing rate of exchange and duty and taxes on value determined in foreign currency at the time of importation;
- If the second vehicle is sold or otherwise disposed of after expiration of two years from the date of importation, 1 percent per month depreciation will be allowed on assessable value of the vehicle up to 50 percent maximum; and
iii. The valid diplomatic card of spouse as well as own diplomatic card of the diplomatic shall be presented during the personal appearance before customs authorities at the time of applying for NOC for disposal of second vehicle.
