ISLAMABAD : The federal government has announced revised duty and tax rates for imported vehicles under the Finance Bill 2026-27, which will take effect from July 1.
According to the bill approved by Parliament, imported vehicles with engine capacities ranging from 2,000cc to 3,000cc will be subject to an 86 percent duty, while vehicles with engines of 3,001cc and above will face a 92 percent duty.
The Finance Bill also introduces significant reductions in duties and taxes on several categories of imported vehicles. The total duty and tax rate on 1,800cc vehicles has been reduced from 156 percent to 74 percent. For vehicles above 1,500cc, the rate has been lowered from 91 percent to 57 percent.
Similarly, the duty and tax rate on imported vehicles between 1,000cc and 1,500cc has been reduced from 76 percent to 52 percent, while the rate on 850cc vehicles has been cut from 66 percent to 42 percent.
Under the new auto policy, the government has also decided not to impose Special Excise Duty on vehicles up to 1,800cc.
Meanwhile, customs duties are being introduced on the import of large electric vehicles. Electric vehicles valued at up to $75,000 will be subject to a 30 percent customs duty, while those worth more than $110,000 will face a 40 percent customs duty.
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The Finance Bill further states that a one-time fixed federal tax of Rs10,000 will be imposed on vehicles up to 1,000cc from July 1. Vehicles up to 1,000cc manufactured before 2010 will be charged a token tax of Rs20,000.
For vehicles between 1,001cc and 1,300cc, the token tax will be set at 0.3 percent of the total invoice value.
Under the new fiscal measures, the federal token tax has been fixed at 0.25 percent of the total invoice value. The bill also specifies a token tax of Rs2,500 for vehicles manufactured before 2010 and Rs6,200 for vehicles manufactured in or after 2010.
