The federal government reduced the additional regulatory duty on imported used vehicles by 10 percent on Wednesday, lowering the levy from 40 percent to 30 percent with immediate effect. According to an official notification issued by the Federal Board of Revenue, the revised tax rate applies directly to all commercial imports entering the country starting today. However, this specific duty will remain in addition to all other existing import charges and standard domestic taxes.
Consequently, the new policy framework dictates that commercial importers will now face a slashed 30 percent regulatory duty instead of the previous 40 percent premium. Furthermore, official sources confirmed that the government intends to consistently decrease this additional regulatory burden by 10 percent annually. Under this proposed strategic timeline, the state will completely phase out the import levy by the 2029-30 fiscal year.
Meanwhile, this fiscal adjustment aligns with a broader national policy framework that permits the regulated commercial inflow of pre-owned automobiles into Pakistan. The Ministry of Commerce previously granted legal permission for these specific shipments through targeted amendments in the Import Policy Order 2022. Therefore, the strategic reduction aims to stabilize the domestic automotive market by offering affordable alternatives to local buyers.
Nonetheless, customs authorities emphasized that all arriving vehicles must strictly comply with established national environmental and safety benchmarks. Compliance with these rigorous standard requirements remains a mandatory prerequisite for the successful clearance and legal registration of any used vehicle under the updated scheme. Ultimately, industry experts believe this progressive tax relief will rejuvenate commercial trading activities while ensuring that only roadworthy, eco-friendly vehicles enter the local transport sector.
