FBR adds another category for vehicles imported by diplomats 

Vehicles sold within two years of import will be levied 100% of prevailing duties, and taxes 

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.

 

Category  Requisite Time Stipulation Requisite Duty and Taxes 
I Less than Five Years  100% prevailing duties and taxes 
After Five Years  50% prevailing duties and taxes 
II After Three Years  45% prevailing duties and taxes 
After Five Years  35% prevailing duties and taxes 
After Ten Years  25% prevailing duties and taxes 
III Before Three Years  100% prevailing duties and taxes 
After Three Years  N/A
Special Before Two Years  100% prevailing duties and taxes 
After Two Years  N/A

 

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.

Profit was unable to obtain a list of which nation’s diplomats fall under which classification. However, we were informed by the Ministry that the requisite embassies are cognisant of which classification their diplomats fall under, and that this information is deemed satisfactory. 

Daniyal Ahmad
Daniyal Ahmad
The author is a member of the staff, and covers the automobile, energy and advertising insdusties as a sector analyst. He can be reached at [email protected]

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