The federal government has reduced the additional regulatory duty on imported used vehicles by 10 percent, lowering the levy from 40 percent to 30 percent with immediate effect, it was reported on Wednsday.
According to a notification issued by the Federal Board of Revenue (FBR), the revised regulatory duty will apply to the commercial import of used vehicles from Wednesday.
The duty will remain in addition to all other applicable taxes and import charges.
The notification states that commercially imported used vehicles will now be subject to a 30 percent regulatory duty, compared with the previous rate of 40 percent.
Sources said the government plans to continue reducing the additional regulatory duty by 10 percent each year.
Under the proposed schedule, the levy will be completely phased out by the 2029-30 fiscal year.
The move forms part of the government’s broader policy framework allowing the commercial import of used vehicles into Pakistan.
Permission for such imports was granted through amendments made to the Import Policy Order 2022.
Officials said imported vehicles must continue to meet strict environmental and safety standards.
Compliance with these requirements remains a key condition for the import and registration of used vehicles under the policy.
