ISLAMABAD(National times)- FBR abolishes Role of Local Agents in Valuation of Imported Luxury Vehicles In a major move to curb under-invoicing and tax evasion on imported luxury vehicles, the Federal Board of Revenue (FBR) has eliminated the role of local authorized agents in determining the value of imported cars. Under the new system, vehicle prices will now be certified directly by the relevant manufacturing companies. The FBR has issued an amended Customs General Order (CGO), according to which importers will no longer be required to obtain valuation certificates from local agents or pay them additional fees. Previously, authorized agents and dealers provided price certificates that formed the basis for customs duties, taxes, and other charges paid by importers. According to FBR officials, the earlier mechanism allowed room for manipulation, as vehicle values were often understated, leading to revenue losses for the national exchequer. The new policy aims to ensure transparency by assessing duties and taxes based on the official prices issued by manufacturing companies. Officials further stated that the revised valuation process will ease the import procedure for traders by eliminating unnecessary interactions with local dealers and reducing extra costs. The decision is expected to have a significant impact on the import of European luxury vehicles and high-end used cars, where under-invoicing was reportedly more common.

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The FBR believes that this reform will strengthen tax compliance, improve revenue collection, and promote a more transparent and fair customs valuation system.