ISLAMABAD: The Federal Board of Revenue (FBR) has imposed a 40 percent Regulatory Duty (RD) on the commercial import of old and used vehicles.
According to an official notification, the duty will apply to vehicles falling under PCT headings 8702, 8703, 8704, and 8711 of the Customs Act, 1969.
The decision follows the Economic Coordination Committee’s (ECC) approval on September 18, 2025, in a meeting chaired by Finance Minister Senator Muhammad Aurangzeb. The federal cabinet later ratified the decision.
The Ministry of Commerce issued SRO 1895(I)/2025 on September 30, 2025, allowing the import of used vehicles up to five years old for commercial purposes. The scheme will remain in place until June 30, 2026. After that, the age limit for imported vehicles may be removed.
The notification stated that the import of such vehicles will be subject to safety, environmental, and quality checks, as per standards set by the Engineering Development Board (EDB) of the Ministry of Industries and Production.
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The government clarified that the newly added clause in the Import Policy Order, 2022, will not affect any other rules related to the same vehicle categories mentioned elsewhere in the order.
The 40 percent duty will be charged in addition to the existing customs duties. It will remain effective until June 30, 2026. Afterward, the duty will be reduced gradually by 10 percent each year, reaching zero by the fiscal year 2029-30, in line with the Tariff Policy Board’s recommendations.
