Major Reduction in Custom Duty on 4×4 Cars in Pakistan — Effective July 1, 2025

The Government of Pakistan has officially enforced a major reduction in customs and regulatory duties on imported cars from July 1, 2025. The changes, detailed in SRO.1151(I)/2025 and SRO.1152(I)/2025 issued by the Federal Board of Revenue (FBR), are part of a broader tariff rationalization aimed at supporting the auto sector and easing the cost burden on consumers.

Custom Duty on SUV in Pakistan and Other Vehicles — Updated Rates

• SUVs and 4×4 Vehicles: Regulatory duty cut by 44%, fixed at 50% regardless of engine size or condition (new or used).
• New Cars and Mini-Vans: Regulatory duty reduced to 10%, a one-third reduction from the previous 15%.
• CKD/SKD Kits: Duty unchanged at 5% to support local assembly.
• CBU Vehicles ≤850cc: Exempted from Additional Customs Duty (ACD).
• CBU New Entrants: Exempted from Regulatory Duty under specific conditions.
• Cars, Jeeps, LCVs CKD >1000cc: ACD reduced to 2%.

Broader Tariff Plan 2025–2030

• Customs duty slabs simplified to 0%, 5%, 10%, 15% (from five slabs previously).
• Maximum regulatory duty rate capped at 50%, down from 90%.
• Additional customs duties and regulatory duties will be phased out over five years.
• Used car import duties to decrease by 10% annually starting September 2025, aiming for elimination by 2029.

Electric and Hybrid Vehicle Incentives

• Electric Vehicles: 1% customs duty, low sales tax, and free import of EV chargers.
• Hybrid Vehicles ≤1800cc: 50% duty waived.
• Hybrid Vehicles >1800cc: 25% duty waived.

The revised duties under SRO.1151(I)/2025 (ACD) and SRO.1152(I)/2025 (RD) apply from July 1, 2025, valid until June 30, 2026, unless changed earlier.