ISLAMABAD: The Federal Board of Revenue (FBR) has slapped 40 per cent Regulatory Duty on commercial import of old and used vehicles.
According to a notification, in exercise of powers conferred by sub-section (3) of section 18 of the Customs Act, 1969 (IV of 1969), the federal government is pleased to levy regulatory duty at the rate of 40 percent on commercial import of used vehicles, falling under PCT Heading 8702, 8703, 8704 and 8711 of the First Schedule to the said act, imported under clause (xvi) of S No 10 of the Table of Appendix-C of the Import Policy Order, 2022 as per the condition stipulated therein. The Regulatory Duty under this notification shall be in addition to the Regulatory Duty levied under Notification S.R.O. No. 1152(l)/2025 dated 30.06.2025...
The Ministry of Commerce had issued an SRO, allowing commercial import of up to five-year-old vehicles with 40 percent additional duty with immediate effect.
In its meeting on September 18, 2025, the Economic Coordination Committee (ECC) of the Cabinet, presided over by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had approved the scheme on a summary moved by the Ministry of Commerce. The ECC decision was also ratified by the federal cabinet.
According to the SRO 1895 (1) 2025 issued by the Commerce Ministry on September 30, 2025, in exercise of the powers conferred by sub-section(I) of Section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), the federal government has directed that the following amendments shall be made in the Import Policy Order, 2022 namely: - ECC approves commercial import of used vehicles
In the Order, in the table, under Appendix-C, in column (I) against serial No.10, in column (2), after clause (xv), the following new clause shall be inserted, namely; (xvi) commercial import of used vehicles, falling under PCT headings 8702, 8703, 8704 and 8711, shall be allowed for vehicles less than five years old, until June 30, 2026, thereafter, the vehicles ‘age limit may be removed. The commercial importation shall be subject to environmental, safety, and quality standards, testing, and certification requirements prescribed by the Engineering Development Board (EDB), Ministry of Industries and Production.
The SRO further stated that nothing contained in the clause shall be construed to override, restrict, or otherwise affect any provisions relating to the same PCT headings provided elsewhere in this Order.
The government also approved the imposition of 40 percent Regulatory Duty (RD), in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old).
This duty will remain applicable until June 30, 2026. Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30, in line with the recommendations of the Tariff Policy Board.
