Giving the background, the sources said that Directorate General of Inter-Services Intelligence (ISI) is an extremely sensitive organisation and its directed task involves high security risks quite peculiar in character. A number of high-level delegations and heads of friendly intelligence agencies visit the organisation for intelligence liaison on security matters and war against terror.
The sources quoted Directorate General of ISI as saying that due to security environment and protocol duties, there is a need for reliable protected vehicles for the security of visiting dignitaries and it obtained approval of the Prime Minister to import two Mercedes Benz type S600 L (S Guard) protected cars (foreign assembled).
According to sources, Directorate General of ISI has approached the Federal Board of Revenue (FBR) for exemption from customs duty/ other duties and taxes attached to the import of vehicles. The FBR was of the view that their power to grant exemption from customs duty/ other duties and taxes attached to the import of vehicles has been withdrawn through Finance Act, 2015 and now only ECC of the Cabinet in specific circumstances can approve such requests.
The Directorate General of ISI has requested the Prime Minister who is also the Chairman of the ECC for grant of exemption for import of two specific Mercedes Benz who directed Cabinet Division to seek comments of chairman FBR and then submit a summary for consideration of the ECC.
The Cabinet Division further informed that the views of the FBR were obtained. The FBR was of the view that ECC can approve exemption from duties and taxes for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral/multilateral agreements and matters relating to international financial institutions.
The FBR, has, therefore, proposed that instead of requesting for exemption from duties and taxes from ECC, the applicable import related taxes and duties for two reliably protected Mercedes Benz may be paid. The Cabinet Division placed the matter regarding grant of exemption of sale taxes and duties on the import two Mercedes Benz type S600 L(S guard) protected cars (foreign assembled ) to the ECC of the Cabinet for consideration. The ECC set aside the proposal of Federal Board of Revenue and approved the proposal submitted by the Cabinet Division.