The Federal Board of Revenue (FBR) has implemented 40 % regulatory duty on the old and used vehicle’s commercial imports.
Under the SRO 1898 (I)/2025 released on Thursday, it is in addition to a regulatory duty already imposed under 40 % Levy SRO 1152 (I)/2025.
The notification refers to the powers under the Customs Act (3) of Section 18 of the 1969, 1969.
The move is part of a wider change in the import policy, where the government will now allow trade imports of a five -year -old used vehicle, but with a 40 % additional tariff in fiscal year 26.
This applies to a falling vehicle under PCT Heings 8702, 8703, 8704, and 8711, which is imported under the Import Policy Order 2022 under clause (XVI) or supplement C.
This duty will be imposed on the upper part of the current regulatory duty from KSRO (1152) before the date of June 30, 2025.
The government plans to reduce this additional 40 % duty by 10 % every year, and completely eliminates it by 2029-30.
The move is in line with Pakistan’s promises under the IMF program to gradually release the tariff and allow immortality of vehicles used under controlled terms.