ISLAMABAD: The federal government has reduced the additional regulatory duty on commercially imported used vehicles from 40% to 30%, as part of a broader plan to gradually ease import restrictions and promote competition in Pakistan’s automobile market.
The Federal Board of Revenue (FBR) issued an official notification confirming that the revised duty came into effect on July 1.
Under the new tariff, commercially imported used vehicles will now be subject to a 30% additional regulatory duty, down from the previous rate of 40%.
The FBR clarified that the regulatory duty will be charged in addition to all existing customs duties, taxes and other applicable import levies.
According to official sources, the government plans to reduce the additional regulatory duty by 10 percentage points each year, with the levy expected to be phased out completely by the 2029–30 fiscal year.
The phased reduction is aimed at gradually liberalizing the country’s import policy, increasing competition in the automotive sector and expanding consumer choice in the used vehicle market.
Earlier this year, the government allowed the commercial import of used vehicles after introducing amendments to the Import Policy Order 2022. However, imported vehicles must continue to comply with prescribed environmental and safety standards.
Officials said only vehicles meeting the government’s regulatory requirements will be eligible for import under the revised policy.
Government introduces new auto policy with big benefits for car buyers
Earlier, the government has decided to implement the new auto policy from July, after which small vehicles will be available for 20 to 25 lakhs.
According to the details, an important meeting of the National Assembly Standing Committee on Industries and Production was held under the chairmanship of Chairman Syed Hafeezuddin, in which several important decisions related to the reduction in vehicle prices in the country, the new auto policy and the quality of electric vehicles were discussed.
Briefing the committee, the Secretary of the Ministry of Industries and Production gave a big piece of good news that the recommendations of the Auto Policy Committee established by the Prime Minister under the chairmanship of Federal Minister for Power Division Owais Leghari will be completed by July.
He said that the new auto policy will be implemented from July, in which special promotion is being given to small vehicles.
After the implementation of this policy, small vehicles will be available for the common citizens at a reasonable price of 20 to 25 lakhs.
Under the policy, small electric vehicles will also be introduced at affordable prices and 3,000 charging stations for electric vehicles will be established across the country by 2030.
He said that 160,000 electric motorcycles and 12,800 electric vehicles were manufactured locally in the country this year.
During the meeting, the poor quality of electric bikes and their batteries produced in the country was severely criticized, with committee member Muhammad Iqbal Khan revealing that “electric bikes produced in the country are ‘disposable’ (defective), whose batteries are discharged within just 6 months. Pakistan will have to adopt global standards to promote electric vehicles.”
Upon strong protests from the members, the standing committee has formed a sub-committee to conduct a thorough investigation into the issue of substandard motorcycles, defective batteries and subsidy, which will inquire into this scam.
