FBR amends SRO for sale of diplomatic vehicles

ISLAMABAD: The Federal Board of Revenue (FBR) has issued amendments to the Statutory Regulatory Order (SRO) for importing vehicles for different diplomatic missions whereby there would be no duty and taxes if they are sold two years after import.

It also notified levying 100 pc duty and taxes if that vehicle is sold or otherwise disposed of before the expiry of two years from the date of import.

According to SRO 923(0/202, in exercise of the powers conferred by Section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of Section 13 of the Sales Tax Act, 1990, sub-section (2) of Section 16 of the Federal Excise Act, 2005 and sections 53 and 148 of the Income Tax Ordinance, 2001 (XLIX of 2001), read with the Second Schedule thereof, subsection (10) of Section 7 of the Finance Act, 1989, the federal government is pleased to direct that the following further amendment shall be made in its Notification No. S.R.O. 577(1)/2006 dated the 5th day of June, 2006, namely:—

In the aforesaid notification, in the schedule, after Category-Ill and corresponding entries relating thereto, the following new category and corresponding entries relating thereto shall be added, namely:- “Special Category. If sold or otherwise disposed of before the expiry of two years from the date of importation; 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. If sold or otherwise disposed of after the expiry of two years from the date of importation, no duty and taxes shall be leviable.”