Luxury Imported Vehicle Duty Dropped by Rs. 26 Million

Jawad

02 Jul 2025

180

Luxury Imported Vehicle Duty Dropped by Rs. 26 Million

In a bold and strategic move under the Finance Act 2025, the Government of Pakistan has introduced significant changes to the Pakistan vehicle import duty structure, providing long-awaited relief to buyers of premium vehicles. These adjustments, enacted through newly issued Statutory Regulatory Orders (SROs), mark a major step toward lowering the financial barriers associated with owning imported high-end vehicles, including luxury cars and SUVs like the LC300, LC200, LX570, and LX600.

Big Changes in Import Taxation

One of the most impactful changes includes a 40% reduction in Regulatory Duty (RD) for vehicles exceeding 1800cc engine capacity. This luxury car duty cut delivers a considerable benefit for consumers looking to import high-end and performance vehicles.

In addition, the Additional Customs Duty (ACD) has been trimmed from 7% to 6%. While this 1% reduction may appear modest, its effects are substantial when calculated on the imported luxury vehicle price, particularly for vehicles that already carry hefty price tags. The tax structure now reflects a more balanced alignment based on engine capacity and vehicle type, offering clearer insight into the final retail cost.

Real Savings for Buyers

Previously, these tax cuts were mostly theoretical, with no clear indication of their effect on actual prices. But now, the Rs. 26 million duty drop has become evident in updated vehicle pricing. This shift is especially noticeable in the luxury segment, where buyers are witnessing meaningful savings due to the imported car tax reduction. The result: luxury car prices drop, making once-distant dreams slightly more attainable.

Toyota:
Car Model	Model Year	Price Reduction (Est.)
Crown RS Advance	2022	Rupees 0.5 Million
Porsche:
Car Model	Model Year	Price Reduction (Est.)
911 Carrera GTS	2024	Rupees 24 Million
911 Turbo	2023	Rupees 26 Million
Mercedes:
Car Model	Model Year	Price Reduction (Est.)
G63	2021	Rupees 20 Million

A Policy with Purpose

These changes are not just about affordability. The government aims to encourage formal vehicle imports, reduce the smuggling of high-end vehicles, and stimulate growth in the legal automotive market. The revised luxury vehicle import tax system supports this agenda by making it more attractive and feasible to legally bring in modern, fuel-efficient models.

Whether you’re a car enthusiast, importer, or investor, this could be the perfect opportunity to benefit from the current wave of duty cut luxury cars. With car import duty Pakistan policies becoming more consumer-friendly, the luxury car segment may experience significant growth.

The new policies have stirred interest across the automotive industry, and many are closely watching the changes unfold. If you’ve been waiting for an opening, this car import tax news might be the green light you were hoping for.

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