ISLAMABAD: The Federal Board of Revenue (FBR) has announced a significant policy move by imposing an additional 40% regulatory duty on the import of vehicles.
This measure comes into effect from October 1, 2025, and will remain applicable until June 30, 2026, according to SRO 1898(I)/2025 issued on October 1.
The notification clarified that the new regulatory duty will be levied in addition to the existing duty outlined under SRO 1152(I)/2025 dated June 30. The government aims to regulate the commercial import of vehicles while ensuring adherence to environmental and safety standards. The Ministry of Commerce had earlier issued SRO 1895(I)/2025 on September 30, formally authorizing the import of vehicles under specified tariff codes.
Under the amended Import Policy Order 2022, commercial imports are restricted to used vehicles under PCT codes 8702, 8703, 8704, and 8711. Initially, the policy applies to vehicles less than five years old, with potential relaxation of the age limit after June 30, 2026. The policy stresses compliance with international safety, environment, and quality certifications, which are mandatory before vehicles can enter commercial channels.
All import transactions are required to be routed through banks to maintain transparency, and a 40% regulatory duty will specifically target older vehicles. The FBR is expected to release a separate notification soon to ensure enforcement of this duty.
Officials further stated that only vehicles meeting global testing and certification benchmarks will be allowed, while the Ministry of Industries is set to finalize rules for monthly depreciation and pricing adjustments for vehicles older than five years. This combination of regulatory oversight and duty enforcement aims to regulate imports while promoting transparency and compliance in the vehicle sector.
