NOTIFICATION

(CUSTOMS)

S.R.O. 1 (I)/2005.- 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, the Federal Government is pleased to direct that the following amendments shall be made in its Notification No. S.R.O. 447(I)/2004, dated the 12^th June, 2004 namely :-

In the aforesaid Notification,-

(a) for conditions (a), (b) and (c), the following shall be substituted, namely :-

“(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 Central Board of Revenue;

(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.”

(b) after condition (c), amended as aforesaid, the following new condition shall be added, namely:-

“(d) for vehicles imported under diplomatic privileges and sold after 1^st 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. 5(1)/92-Cus.Exemp (Pt)01/2005).

(ZAFAR UL MAJEED)

ADDITIONAL SECRETARY

NOTIFICATION

(CUSTOMS)

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:

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:

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.

No duty and taxes shall be leviable.