Islamabad, September 11, 2025 – The Federal Board of Revenue (FBR) has finalized a new framework to address the handling and disposal of confiscated vehicles.
The initiative aims to eliminate ambiguities in the current system, reduce misuse, and ensure a transparent mechanism for auctions.
The decision was taken in a high-level meeting chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar. The session focused on reviewing existing laws and administrative loopholes related to tampered and confiscated vehicles. Following extensive discussions, a dedicated sub-committee was tasked with drafting a comprehensive policy. This effort culminated in the approval of a new Customs General Order (CGO), which will serve as the guiding document for future implementation.
Officials emphasized that the new policy is designed to prevent irregular practices in the management of vehicles and to generate higher state revenue through competitive auctions. The Deputy Prime Minister underscored that the transparent disposal of such vehicles will not only reinforce accountability but also restore public trust in customs procedures.
Tax experts at the meeting highlighted longstanding concerns, noting that many confiscated vehicles were previously retained by senior officials instead of being auctioned or returned to rightful owners as per judicial rulings. The revised system seeks to put an end to such practices and enforce court decisions more effectively.
The meeting also recalled recommendations from the Federal Tax Ombudsman (FTO), which had earlier urged FBR to involve the Economic Coordination Committee (ECC) for structured disposal. In particular, the FTO suggested donating tampered chassis vehicles to registered charitable organizations for social welfare projects.
With this approval, authorities expect a more disciplined, fair, and revenue-oriented approach in managing the sensitive issue of confiscated vehicles.