The import of stolen vehicles has been declared illegal by the government.

In an Own Motion Investigation, the Federal Tax Ombudsman (FTO) ruled the import of stolen cars under the Transfer of Residence, Baggage Scheme, or Gift Scheme unlawful.

Previously, in August 2006, the then-Central Board of Revenue (CBR), now known as the FBR, ruled at a Customs Conference that the import of such a car was lawful following payment of a redemption fee and taxes.

Today, the FTO's investigative committee overturned the judgment, emphasizing that importing stolen cars without following the proper legal procedure would encourage criminal activity in the nation.

FTO advised that the FBR have to order all its Customs Collectors and other relevant agencies to discontinue this practice immediately. The FTO further ordered those stolen cars coming in for import be either returned to the appropriate authorities of the nation from where the vehicle is being imported or seized and auctioned off.

In this regard, FTO sent a notification to FBR, and the tax agency responded by reporting that Customs collectors in Sialkot and Peshawar approved six and three cars, respectively, in 2007 and 2013-2014. The FTO suggested to the FBR that the Customs Collector Sialkot should confiscate the identified cars and conduct the appropriate legal action against the importers implicated. A report should be submitted within 45 days.

CBR decided in August 2006 that the Collector may clear the car after issuing a 30% redemption fee under the provisions of the Customs Act 1969 and that no further action should be taken until a government agency from the relevant nation contacted the government of Pakistan.