The Federal Board of Revenue (FBR) has imposed a 40% regulatory duty on the commercial import of used vehicles, in addition to existing customs duties, the government announced on Thursday.
Under the SRO 1895 (1) 2025 issued by the Ministry of Commerce, commercial import of vehicles less than five years old, falling under PCT headings 8702, 8703, 8704, and 8711, is permitted until June 30, 2026. After this period, the age restriction may be removed.
Imported vehicles will need to comply with environmental, safety, and quality standards set by the Engineering Development Board (EDB), including testing and certification requirements.
The move follows approval of the scheme by the Economic Coordination Committee (ECC) of the Cabinet on September 18, 2025, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and ratification by the federal cabinet.
The notification allows the government to levy regulatory duty on used vehicles imported under clause (xvi) of serial No. 10 in Appendix-C of the Import Policy Order, 2022. The 40% duty will remain in effect until June 2026 and is planned to reduce gradually by 10 percentage points per year, reaching zero by FY30, in line with Tariff Policy Board recommendations.
The SRO clarifies that these provisions will not override any other rules relating to the same PCT headings in the Import Policy Order, ensuring the commercial import framework remains aligned with existing trade regulations.
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