Islamabad, March 31, 2026 – The Federal Board of Revenue (FBR) has introduced a comprehensive procedure for the use and disposal of confiscated vehicles with tampered chassis numbers through Customs General Order (CGO) No. 04 of 2026. The new policy, effective from April 1, 2026, aims to ensure transparency, uniformity, and accountability in handling such vehicles across Pakistan.
Priority Use by FBR Formations
Under the new guidelines, vehicles with tampered or altered chassis numbers—often seized in anti-smuggling operations—will first be allocated for official use within the Customs Wing of the FBR. Formations must submit detailed proposals justifying their operational needs, which will be reviewed by a committee headed by the Member (Customs Operations).
Vehicles above 1800cc will be reserved primarily for enforcement and anti-smuggling units, while officers in BS-19 grade may be allocated vehicles up to 1800cc for mobility purposes. Special provisions have also been made for hard-area postings, particularly in remote regions of Balochistan and Khyber Pakhtunkhwa.
Digital Monitoring and Reporting System
To enhance transparency, the FBR will launch a digitized system for tracking confiscated vehicles. Each vehicle’s details—including forensic reports, photographs, condition, and litigation status—will be uploaded to ensure proper record-keeping. Access to this system will also be extended to the Cabinet Division for oversight and coordination.
Disposal of Surplus Vehicles
After fulfilling internal requirements, leftover vehicles with no pending legal cases will be offered for sale strictly to government and semi-government entities. These include public sector departments and government-owned educational, medical, and scientific institutions. Importantly, the FBR has barred the sale of such vehicles to private individuals.
Vehicles will be sold at subsidized rates—15% of the reserve price for federal departments and 50% for provincial departments. Reserve prices will be determined based on vehicle condition, model, and market benchmarks, following established customs valuation procedures.
Strict Payment and Delivery Mechanism
Payments must be made exclusively through official government accounts and verified by the Accountant General Pakistan Revenues (AGPR). Upon confirmation, vehicles will be delivered to authorized representatives only after registration with the Excise and Taxation Department in Islamabad.
The purchasing departments are required to formally acknowledge receipt within three weeks, ensuring proper documentation and transparency.
Final Disposal and Dismantling
At the end of their service life, tampered vehicles will be dismantled under strict supervision by designated customs committees. Vehicles above 1800cc will typically be dismantled after 20 years, while those up to 1800cc will be disposed of after 15 years, subject to certain conditions.
Additionally, vehicles such as buses and vans that remain unsold may be provided free of cost to government-run institutions on the recommendation of relevant ministries. Any vehicle not disposed of within five years will be dismantled as per government policy.
Oversight and Compliance
The FBR has emphasized strict compliance with the new procedure. Regular audits will be conducted to prevent misuse, and violations may lead to cancellation of allocations, seizure of vehicles, and disciplinary action against responsible officials.
The new framework reflects the FBR’s commitment to improving governance, enhancing transparency, and ensuring efficient utilization of confiscated assets within the public sector.