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Government Increases Custom Duty on Car Imports by Upto 30%

In the SRO issued yesterday, the Federal Board of Revenue enlisted imported items and their respective customs tax. The new SRO amended the older one, changing custom duties, increasing the tax rate charged on the import of new vehicles by 30%.

PM of Pakistan, Shahid Khaqan Abbasi said in an interview that he will not let the rupee get devalued. Increase in customs tax will help government generate a substantial flow of revenue towards the economy while discouraging people from importing expensive equipment which hurts the foreign exchange reserves.

Pakistan’s economy has been struggling off late with unstable value of rupee, uncertainty in stock market and several other factors. This step, however, will assist the mafia and monopoly of the trio of Japanese car manufacturers (assemblers) which have been ‘robbing’ the people of Pakistan by overpricing cars while stripping them of basic features.

Having to spend huge sums of money for outdated vehicles is outrageous – the same amount of money can get you a much superior vehicle from other countries.

The last resort for Pakistanis – imported vehicles – are also being eyed on by the government. The new taxes will increase the total cost of importing vehicles to Pakistan.

Here’s a compiled list of vehicles and the new customs taxes imposed via the new SRO;

  • New Sport-Utility Vehicles (SUVs): 80% tax, up from 50%
  • Old and Used Sport-Utility Vehicles (SUVs) 1801cc-3000cc: 60% unchanged
  • New Cars and Jeeps 1801cc-3000cc: 80% up from 50%
  • Used Cars and Jeeps 1801cc-3000cc: 60% unchanged
  • New Cars and Jeeps above 3000cc: 80% up from 50%
  • Used Cars and Jeeps above 3000cc: 60% unchanged
  • New All-terrain vehicles: 80% up from 50%
  • Old and Used All-terrain vehicles: 60% unchanged
  • New Cars and Jeeps Above 2000cc: 80% up from 50%
  • Used Cars and Jeeps Above 2000cc: 60% unchanged
  • New Cars and Jeeps Above 2500cc: 80% up from 50%
  • Used Cars and Jeeps Above 2500cc: 60% unchanged
  • New Other: 80% up from 50%
  • Old and Used Other: 60% unchanged
  • Vehicles of a cylinder capacity exceeding 1000cc but not exceeding 1300cc: 15% unchanged

Note that the “New Sport-Utility Vehicles (SUVs)” category previously excluded electric-hybrid vehicles falling into the same class and their exclusion in the revised SRO is not mentioned so we can expect the same tax rate on them as well.

Via SRO1035(I)/2017 and SRO504(I)/2017

  • Garbage government. Instead of increasing duties and taxes. Decrease corruption but since this is Pakistan it can’t happen

  • It’s really surprised, instead of stopped the money laundering ways- he is seeking the most common way to save money value. FBR failed to performed it’s role-SBP involve in money laundering as per print media. Instead of increasing local built vehicles capacity to meet demand, putting more and more taxes, ultimately affects the user who buy 25 years old “Teen Dabba” Mehran- Bolan at 8 lac rupees now.
    Govt itself involve in money laundering, unfortunate, we are heading by people who r most corrupted.

  • old and used vehicle duties unchanged that i think mean i m safe because im looking to buy Daihatsu Tanto or Nissan Dayz roox highway star, if i am wrong please anybody correct me

  • Being related to economics for past 10 years ( not in any govt sector) I think this is a good step.. I dont understand the writer We shid droive kuxury cars while whole country suffer from devalued currency… Imports not only devalue our money but also discourage our local manufacturers , I would like to see more stringent duties on imports on luxury item… We should stop thinking of personal luxuries and start thinking of our country now

    • I would love to correct you but I see you fail to understand even the basics of economics and how the economy works. You’re simply caught up in the illusion created.

  • It’s a disgrace that overseas Pakistanis are being ripped off like this.
    We are the backbone off this country.
    All of us should stop sending money to Pakistan and see how they run the country then.
    Corrupt government and judicial system and police.
    Disgraceful that’s all that can be said about this.

    • Agree. These political crap is eating the country. Allowing these toyotas/suzuki selling their cheap in roadworthy cars on fuming high prices are not concerned about the environment hence major source of pollution. Honda took Pakistan to the court that the petrol/diesel in Pakistan is damaging their engines. Bloody corrupt government.why don’t they tax cigarette and tobacco related products. Who said we ate damaging the economy by importing cars? Answer me what bloody car PAKISTAN make? A bloody Rickshaw?

  • Hi
    would anyone advise me regarding total cost of custom/tax at karachi for 3L SUV .
    I am moving to pak from Ireland after 20 years.

  • how much will it cost? if i want to import a car 2007g model is there anyone who have much information about the custom rates. please comment i am waiting guys

  • Sallam plz help
    I wanna bring Ford expedition my personally use in muscat my own name 5400 cc 8 clender 2014 model .
    How much custom i need to pay

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