### Pakistan’s Federal Board of Revenue (FBR) Ends Local Agents’ Role in Valuing Imported Luxury Cars
In a significant move to address the issue of under-invoicing and curb tax evasion on imported luxury vehicles, the FBR has abolished the role of local authorized agents in determining the value of these vehicles. Under the new system, vehicle prices will now be certified directly by relevant manufacturing companies.
Previously, importers were required to obtain valuation certificates from local agents or pay additional fees. This arrangement allowed for potential manipulation as vehicle values often underestimated and led to revenue losses for the national exchequer.
The FBR has issued an amended Customs General Order (CGO) mandating that importers will no longer need to seek valuation certificates from local agents, thus eliminating unnecessary interactions with dealers and reducing extra costs.
FBR officials assert that this reform aims to ensure transparency in duty and tax assessments by relying on the official prices set by manufacturing companies. The new policy is expected to have a substantial impact on the import of European luxury vehicles and high-end used cars where under-invoicing was reportedly more common.
The FBR denies claims of losing Rs100 billion due to the reform, arguing that it will strengthen tax compliance, improve revenue collection, and promote a fairer customs valuation system.