No tax exemption granted to ex-military officers for importing bulletproof vehicles, clarifies FBR

ISLAMABAD: The Federal Board of Revenue (FBR) clarified Saturday that no Statutory Regulatory Order (SRO) has been issued granting exemption to ex-military officers for importing bulletproof vehicles tax-free.

"FBR categorically denies reports appearing in some sections of media that it has issued an SRO allowing duty-free import of bulletproof vehicles," the tax regulator said in a statement.

The tax collection body added that the federal cabinet had allowed such a facility in 2019, however, no notification to this effect has been issued so far.

In a separate statement, PM’s aide Salman Sufi said that there is no question of allowing any duty-free imports to any official.

“Everyone shall pay their fair share of duty when importing any vehicle,” he tweeted.

It was earlier reported that after getting approval from the federal cabinet, the FBR has exempted senior army officers from payment of all duties and taxes on the import of bulletproof vehicles up to 6,000cc after their retirement and a notification will be issued soon.

The report said that the FBR’s Member Customs Policy signed an official notification to this effect here on Friday but it was not yet placed on the official website.

However, top official sources confirmed to The News on Friday night that the exemption of Customs Duty, Sales Tax, Withholding Tax and Federal Excise Duty (FED) would be applicable on the import of bulletproof vehicles up to 6,000cc by the retired military officials, including Lieutenant Generals, services chiefs, Chief of the Army Staff and Chairman Joint Chiefs of Staff Committee (CJCSC).

The sources confided that the FBR might place the concerned notification on its website any time soon but all formal requirements were fulfilled after seeking permission from the federal cabinet for allowing this kind of tax exemption.

However, there will be certain conditions attached to this permission. The FBR will allow the exemption of duties and taxes on the import of such vehicles by the said officials on their retirement on the recommendations of the Ministry of Defence.

All four-star generals have been permitted to import 2 vehicles after retirement, according to the report.

The owners of the vehicles would be required to obtain the prior permission of the FBR for the sale of such vehicles after their import.

If the vehicle is disposed of before a five-year period, the FBR will recover all duties and taxes applicable at the time of import of such vehicles, it added.