Duties Reduced on Imported Cars – Full Details

Jawad

01 Jul 2025

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Duties Reduced on Imported Cars – Full Details

The Government of Pakistan has announced major revisions in its vehicle import policy for the current fiscal year, bringing significant relief in the form of car duty reduction. These updates, implemented through newly released Statutory Regulatory Orders (SROs), aim to streamline the overall imported car duty system across various vehicle categories—including non-hybrid, hybrid, and electric vehicles (EVs).

Key Reductions in Car Import Tax

A major highlight of the revision is the drop in Additional Customs Duty (ACD) from 7% to 6% on all imported vehicles. This change, paired with a notable reduction in Regulatory Duty (RD), signals a progressive shift. For SUVs and 4×4 vehicles with engine capacities between 1801cc and 3000cc, car import tax has been reduced dramatically from 90% to just 40%. In the case of vehicles under 1800cc, including hybrids, RD has gone down from 15% to 10%.

These duty cut cars policies suggest the government’s intent to curb illegal vehicle imports and increase transparency, while making cheap imported cars more accessible to the public.

2025 Duty Breakdown vs. 2024

Non-Hybrid Vehicles

Category	2024 Incidence	2025 Incidence	Actual % Decrease
1301 - 1500cc	174%	165%	5.17%
1501 - 1600cc	197%	188%	4.57%
1601 - 1800cc	197%	188%	4.57%
1801 - 3000cc (cars / jeeps)	429%	361%	15.85%
Above 3000cc	470%	401%	14.68%
Panel / Van	116%	115%	0.86%
Pickup	181%	179%	1.10%
Passenger Van / Coaster (10+ Seats)	65%	61%	6.15%

Observation: Luxury vehicles in the 1800cc–3000cc and 3000cc+ categories have benefitted the most. The steep decline in Pakistan car duties for this segment may help control smuggling and ensure better compliance with customs regulations.

Hybrid Vehicles (HEVs)

Category	2024 Incidence	2025 Incidence	Change
1801 - 2500cc	295%	287%	2.7%
2501 - 2999cc	295%	287%	2.7%
3000cc and above	326%	322%	1.23%

Observation: Hybrid cars have received modest tax relief. Though they still bear relatively high levies, the slight reductions show an effort to promote energy-efficient transport options without drastically affecting revenue.

Electric & Other Vehicle Categories

Category	2024 Incidence	2025 Incidence	Change
Below $ 50,000	62%	62%	No Change
Above $ 50,000	103%	102%	0.97% (ACD decreased from 7% to 6%)

The overall shift in import car prices due to these reforms is expected to impact both consumers and car importers. Keeping track of the latest car import news is essential for those planning new purchases or business decisions in Pakistan's auto industry.

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