FBR Increases Duty on Import of Luxury Vehicles

The government has finally imposed a massive hike in the Regulatory Duty (RD) on imported luxury vehicles after several weeks of contemplation.

The Federal Board of Revenue (FBR) has issued a notification on Friday, according to which, the government has increased the RD rates on various vehicles in Completely Built-Up (CBU) condition from 15 percent to 50 percent.

The government has set 10 percent RD on the CBU Electric Vehicles (EVs) with a battery pack larger than 50 kWh. Heavy commercial vehicles such as electric buses and trucks are exempt from this clause.

The RD has been increased from 15 percent to 50 percent on:

  • New 4×4 vehicles in CBU condition
  • New minivans in CBU condition
  • New SUVs and crossovers in CBU Condition
  • Other new passenger vehicles in CBU condition with engine capacity between 1000cc and 1300cc

The Rationale

The Economic Coordination Committee on Cabinet (ECC) greenlit the enactment of these rates to pin down the skyrocketing import bill mainly caused by expensive vehicle imports. The intent is to also encourage the automobile companies to manufacture cars in Pakistan to cater to the local market as well as the import market.

The increase in RDs for imported vehicles is likely to increase the prices of premium CBU import vehicles. However, the demand is likely to remain the same due to the greater purchasing power of the key target segment.


  • Lakh di lanat FBR te… burdening and milking existing tax payers instead of broadening tax base.


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