The federal government of Pakistan has announced a significant reduction in the additional regulatory duty on imported used cars, providing relief to vehicle importers and consumers. The move is part of the government’s broader plan to gradually liberalize the import of used vehicles over the coming years.
According to official reports, the Federal Board of Revenue (FBR) has reduced the additional regulatory duty on commercially imported used vehicles from 40% to 30%. The revised duty structure has come into effect immediately following the issuance of the latest notification.
Under the new policy, the 30% additional regulatory duty will be charged alongside the existing customs duties and taxes applicable to imported used vehicles. While importers will still have to pay other mandatory taxes, the reduction in the additional duty is expected to lower the overall import cost.
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The government has also announced a long-term roadmap for further reductions. As part of this plan, the additional regulatory duty will be reduced by 10 percentage points each year, with the duty expected to be completely eliminated by the 2029–30 fiscal year.
The decision follows earlier amendments made to the Import Policy Order 2022, which allowed the commercial import of used vehicles into Pakistan under specific conditions. Imported vehicles must continue to meet all environmental, emissions, and road safety standards before they can be cleared for entry into the country.
Industry experts believe the latest reduction could improve competition in Pakistan’s automobile market by increasing the availability of imported used vehicles. It may also provide consumers with more choices, especially at a time when new vehicle prices remain high.
However, analysts note that the final retail price of imported cars will still depend on several factors, including customs duties, sales taxes, exchange rates, freight charges, and other import-related expenses.
The government’s phased reduction of regulatory duties is aimed at creating a more competitive automotive market while ensuring that imported vehicles comply with national safety and environmental regulations. Consumers and importers are expected to closely monitor future policy changes as the planned annual reductions continue over the next several years.
