Embassy vehicles ( also known as Gratis vehicles ) are exempted from local taxes across the world., for 5 years. - Respective foreign offices issue a permit to every consulate & embassy providing taxes exemption.
In Pakistan - After 5 years an embassy can auction the vehicle after obtaining following documents;
An NOC from Ministry of Foreign Affairs with complete details of vehicle as in
a. make & model of vehicle
b. date of import in country
c. location of vehicle at time of disposal
An NOC from FBR / Pakistan customs for exempted vehicle auction / sale
a. mentioning make & model of vehicle
c. date of import in country
c. location of vehicle at time of disposal
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it is prerogative of FBR / Customs to allow or disallow duty & taxes free sale of vehicle
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Sale of a Gratis Vehicle by any embassy without above documents is illegal,
People who buy such vehicles without documentation, run door to door for weeks & months end up paying upto 40% of vehicle value and get stuck with excise office for registration.
Pakistan Customs have jurisdiction to impound such vehicle(s) at any given instance of time if not accompanied by the working valid permit issued by Foreign office to respective embassy.
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for duty calculation please check this link
