The Federal Board of Revenue (FBR) has announced a 40% regulatory duty on the commercial import of old vehicles up to five years old, effective from October 1, 2025.
The move is expected to impact importers and traders dealing in used cars, who will now be required to pay additional taxes.
Fresh duty on used cars
According to FBR’s newly issued SRO 1898, all commercial imports of used vehicles up to five years old will be subject to the new regulatory duty.
The notification clarified that this duty is in addition to the one imposed earlier on July 1, meaning importers will now face a compounded financial burden on vehicles entering Pakistan from October 1 onwards.
The FBR emphasized that all importers must comply with the notification and ensure payment of both the previously applicable July duty as well as the new October levy. Non-compliance could result in penalties and clearance delays at ports.
Also Read: Pakistan opens old vehicle imports to meet IMF condition
Last week, the federal government fulfilled a major condition ahead of the arrival of the International Monetary Fund (IMF) mission by immediately allowing the commercial import of old vehicles. The IMF had set a deadline of September 30 for the removal of all restrictions in this sector.
Officials confirmed that initially, the import of five-year-old vehicles will be permitted until June 30, 2026. Importers will face a 40 percent additional tax compared to new vehicles, alongside customs duty, additional customs duty, and regulatory duty.
After July 1, 2026, the age limit for imported vehicles will be removed altogether. The duty on old vehicles will then be gradually reduced by 10 percent each year until FY 2029-30.
