The government has allowed diplomats to locally sell two vehicles imported without payment of duties and taxes as per new policy to be launched from September 1, 2005.
The Ministry of Foreign Affairs has informed the Central Board of Revenue (CBR) that diplomats would be allowed to import two vehicles, if accompanied by spouse, and were permitted to sell one vehicle and export the other. This was the earlier practice as mentioned in 1999 Handbook on Protocol Matters to deal with vehicles imported by diplomatic missions.
After the introduction of amended SRO 1(I)/2005 of January 1, 2005, it has now been decided to give sale permission for both imported vehicles, keeping in view the taxation rates applied to the three categories of vehicles as per reciprocal arrangements. This policy will be effective from September 1, 2005, the Ministry of Foreign Affairs added.
Sources told this scribe on Saturday that CBR Member Customs Shahid Rahim Shaikh has received the policy change in the sale of vehicles imported by diplomats from the Ministry of Foreign Affairs.
The CBR has already made it mandatory for the diplomats/foreign missions operating in Pakistan to obtain prior permission for selling of duties/taxes-free vehicles, imported by these diplomats, from the Ministry of Foreign Affairs.
According to the existing policy, the CBR has laid down different conditions for the sale of diplomatic vehicles imported after April 1, 2005 and those imported before this date. The tax officials have divided the countries into three categories for levying duties and taxes on local sale of diplomats' vehicles after April 2005. The category of any country will be determined by the Ministry of Foreign Affairs.
Ministry of Foreign Affairs will issue authorisation for local sale on payment of duties/taxes as per schedules given in the SRO (I)/2005, depending upon the category of the country as determined by Ministry of Foreign Affairs.
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