The Ministry of Commerce (MoC) has issued a new statutory regulatory order (SRO) permitting the commercial import of used vehicles under five years old with a 40% additional duty.
The new regulation takes effect immediately and will remain in place until June 30, 2026.
The decision follows approval by the Economic Coordination Committee (ECC) of the Cabinet during its meeting on September 18, 2025, which was chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The ECC’s decision was later ratified by the Federal Cabinet.
According to SRO 1895(1) 2025, issued by the Ministry of Commerce, the change applies to vehicles falling under PCT headings 8702, 8703, 8704, and 8711. These vehicles will be allowed for commercial importation until June 30, 2026, after which the age limit may be lifted.
The imported vehicles must meet environmental, safety, and quality standards as outlined by the Engineering Development Board (EDB) of the Ministry of Industries and Production.
Additionally, the government has imposed a 40% regulatory duty (RD) on the commercial import of these used vehicles, which will be in effect until June 2026. Following that, the duty will be gradually reduced by 10 percentage points annually, eventually reaching zero by 2029-30. This adjustment is in line with the recommendations from the Tariff Policy Board.
This decision is expected to boost the commercial import sector, providing more options for consumers while aligning with the country’s long-term tariff policy.
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