ISLAMABAD – The Government of Pakistan has introduced major reforms to the import duty structure for vehicles in fiscal year 2025-26. According to the revised structure, the government has introduced relief to the consumers across several vehicle categories, most importantly on imported cars.
As per reports, if you import a 1000cc non-hybrid vehicle around the price tag of Rs2.5-3 million, the new duty structure will produce results in the form of savings as compared to the previous duty structure of the last fiscal year. Earlier, the tax and duty fee on a 1000cc non-hybrid car around this price tag used to be 174pc, added to the total cost of Rs. 7.67 million.
In the revised policy of fiscal year 2025-26, the taxes have been brought down by 9-10pc to be placed at 165pc. The total landed cost has decreased, resulting in a direct saving of about Rs 2 lakh to Rs 2.5 lakh. This reduction is primarily due to a decrease in Additional Customs Duty and a 5% reduction in Regulatory Duty on vehicles.
For further relief, the concerned authorities introduced changes in the Additional Customs Duty (ACD), 7pc to 6pc on all imported vehicles. A further cut in Regulatory Duty (RD) for bigger vehicles and 4×4 vehicles that have an engine between 1801cc and 3000cc.
The total tax rate on mid-size cars (1301–1500cc) has been slashed from 174% to 165% in fiscal year 2025-26. However, the vehicle category that witnessed the largest cut was vehicles ranging from 1801–3000cc saw the biggest cut, with the total tax rate decreased from 429% to 361%. The vehicles with engines above 3000cc received relief; the total tax rate was slashed by 69% to stand at 401%.
Meanwhile, minor reductions were applied to pickups, vans, and motorcycles. The automobile experts remarked that the reduced duties in higher-end segments signal a strategic shift to discourage the smuggling and misuse of imported vehicles by making legal imports easier and more available for consumers.
Vehicle Tax Comparison: 2024 vs 2025
| Category | Engine Size | Tax 2024 | Tax 2025 | Change |
|---|---|---|---|---|
| Mid-Size Cars | 1301–1500cc | 174% | 165% | ↓ 9% |
| Large Cars | 1801–3000cc | 429% | 361% | ↓ 15.85% |
| Luxury Cars | Above 3000cc | 470% | 401% | ↓ 69% |
| Pickups, Vans, Motorcycles | Various | Minor reduction | Minor reduction | – |
| Hybrid Vehicles (HEVs) | 1801–2999cc | 295% | 287% | ↓ 2.7% |
| Hybrid Vehicles (HEVs) | Above 3000cc | 326% | 322% | ↓ 4% |
| Electric Vehicles (EVs) | Below $50,000 | 62% | 62% | No change |
| Electric Vehicles (EVs) | Above $50,000 | 103% | 102% | ↓ 1% |
