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
Vehicle Category | Previous Rate (%) | New Rate (%) | Reduction (%) |
---|---|---|---|
SUVs and 4×4 (all engine sizes) | 90 | 50 | 44 |
New cars and mini-vans | 15 | 10 | 33 |
CKD/SKD kits | 5 | 5 | 0 |
CBU (Completely Built Units) ≤850cc | 7 (ACD) | 0 | 100 |
Cars/Jeeps/LCV CKD >1000cc (ACD) | 7 | 2 | 71 |


- 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.