Exemption from customs duty & Sales Tax on import of Vehicles by diplomats, privileged persons, Organizations or agencies and subsequent sales etc.

GOVERNMENT OF PAKISTAN MINISTRY FINANCE, REVENUE AND ECONOMIC AFFAIRS (REVENUE DIVISION) *** Islamabad, the 12th June, 2004. NOTIFICATION (CUSTOMS) S.R.O. 447(I)/2004.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990 and in supersession of its Notification Nos. S.R.O. 506(I)/88 dated the 26th June, 1988 and S.R.O. 403(I)/96 dated the 13th June, 1996, the Federal Government is pleased to exempt vehicles, including motor car, falling under respective headings of Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), imported into Pakistan free of customs- duty and sales tax by diplomatic representatives or mission of a foreign government in Pakistan or privileged person, organization, office, agency and subsequently sold or otherwise disposed off in the country to a person entitled to import the same without payment of customs duty and sales tax under this notification, from so much of customs-duty as is in excess of that leviable as set out below, subject to the following conditions, namely:- 2[“(a) no such motor vehicle shall be sold, transferred or otherwise disposed of in Pakistan except with the prior permission of the Central Board of Revenue, except for vehicles imported under diplomatic privileges for which Ministry of Foreign Affairs issues the sale permission with a copy of sale permission of each vehicle provided to the 3[Collector of Customs of port of import]; (b) no such motor vehicle except for vehicles imported under diplomatic privileges shall be sold or otherwise disposed of in Pakistan before the expiration of five years from the date of its importation, without payment of customs-duty and other taxes at the following rates namely:- (i) | if sold or otherwise disposed of before the expiration of five years from the date of importation; | whole of the customs-duty and other taxes leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. (ii) | if sold or otherwise disposed of after the expiration of five years from the date of importation; and | 75% of the customs-duty and other taxes leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. (iii) | if sold or otherwise disposed of after the expiration of ten years from the date of importation; | 25% of the customs-duty and other taxes leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation; (c) | (i) | if vehicle imported under diplomatic privileges and sold after three years from the date of importation but before the 31 st March, 2005; and | 45% of duty and taxes shall be leviable at the prevailing rates of exchange of currency and duties/taxes on the value determined in foreign currency at the time of importation. (ii) | if vehicle imported under diplomatic privileges and sold after ten years from the date of importation but before the 31 st March, 2005. | 25% of duty and taxes shall be leviable at the prevailing rates of exchange of currency and duties/taxes on the value determined in foreign currency at the time of importation.” “(d) for vehicles imported under diplomatic privileges and sold after 1st April, 2005, Ministry of Foreign Affairs will issue authorisation for local sale on payment of taxes as per the following Schedule depending upon the category of country of origin of the diplomat based on reciprocity as determined by the Ministry of Foreign Affairs and approved by the Foreign Secretary with copy of each to the Central Board of Revenue; SCHEDULE (1) | (2) Category-I: (i) if sold or otherwise disposed of before the expiration of five years from the date of importation; and | 100% of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. (ii) if sold or otherwise disposed of after the expiration of five years from the ate of importation; | 50% of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. Category-II: (i) if sold or otherwise disposed of after the expiration of three years from the date of importation; | 45% of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. (ii) if sold or otherwise disposed of after the expiration of five years from the date of importation; and | 35% of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on value determined in foreign currency at the time of importation. (iii) if sold or otherwise disposed of after the expiration of ten years from the date of importation. | 25% of duty and taxes shall be leviable at the prevailing rates of exchange and duties/taxes on currency at the time of importation. Category-III: (i) if sold or otherwise disposed of before the expiration of three years from the date of importation; and | 100% of duty and taxes shall be leviable at the prevailing rates of exchange and duties /taxes on value determined in foreign currency at the time of importation. (ii) if sold or otherwise disposed of after the expiration of three years from the date of importation. | No duty and taxes shall be leviable.] [C.No. 3(9)-Tar-II/84.Pt.] ( MUHAMMAD RAMZAN ) Additional Secretary As amended 1. Earlier the then clause (c) was amended vide S.R.O.553(I)/2004, dated 30.06.2004. On 1.1.2005 entire clause was substituted. 2. Substituted vide S.R.O.1(I)/2005 , - dated 01.01.2005 3.. S.R.O.154(I)/2006 - dated 04.02.2006