New levy takes effect under SRO 1065(I)/2026 and will be charged in addition to existing regulatory duties
ISLAMABAD: The Federal Board of Revenue (FBR) has imposed an additional 30% regulatory duty (RD) on the commercial import of used vehicles in a move aimed at protecting Pakistan’s domestic automotive industry.
The new levy has been notified through SRO 1065(I)/2026, issued under sub-section (3) of Section 18 of the Customs Act, 1969, and takes effect immediately.
The notification supersedes SRO 1898(I)/2025, dated October 1, 2025.
According to the FBR, the 30% regulatory duty will apply to the commercial import of used vehicles falling under Pakistan Customs Tariff (PCT) headings 8702, 8703, 8704 and 8711.
The levy covers vehicles imported under clause (xvi) of Serial No. 10 of the Table of Appendix-C of the Import Policy Order, 2022, subject to the conditions specified therein.
The FBR has clarified that the newly imposed duty will be in addition to the regulatory duty already applicable under SRO 1064(I)/2026, which updated the regulatory duty schedule for FY2026-27 with effect from July 1, 2026.
The additional levy is intended to discourage commercial imports of used vehicles, support local automobile manufacturers and assemblers, and contribute to the government’s broader import management and revenue mobilisation objectives.
Industry experts believe the higher regulatory duty is likely to increase the landed cost of commercially imported used vehicles, making them more expensive for importers and buyers while enhancing the competitiveness of locally assembled vehicles.
