The government of Pakistan has seemingly delivered on its promise to make it nearly impossible for people to buy imported cars.
Last week, Federal Minister of Finance Miftah Ismail removed the import ban on luxury and non-essential items including Completely Built-Up (CBU) cars. He stated that the government will impose heavy taxes on non-essential imports to save the dwindling foreign exchange reserves.
According to reports, the board has hiked regulatory duties to 100% from the previous 15% on the import of vehicles with engine capacity larger than 1000cc. This implies that the following CBUs are set to witness a massive increase in prices:
Note: This list consists of the most popular imported CBU cars in Pakistan.
| Vehicles | Current Price (Rs.) |
| Toyota | |
| Corolla Cross Base Grade | 12,249,000 |
| Corolla Cross Mid Grade | 13,099,000 |
| Corolla Cross High Grade | 13,419,000 |
| Prius S | 14,649,000 |
| Rush G Manual | 8,009,000 |
| Rush G Automatic | 8,329,000 |
| Camry | 23,319,000 |
| Honda | |
| CR-V | 10,700,000 |
| Accord | 15,499,000 |
| Suzuki | |
| Jimny | 6,049,000 |
| APV | 6,290,000 |
| Kia | |
| Carnival GLS | 10,199,000 |
| Carnival GLS+ | 12,599,000 |
| Carnival Executive | 12,600,000 |
| Hyundai | |
| IONIQ | 7,000,000 |
| Santa Fe | 18,500,000 |
| Staria 3.5 Automatic | 7,199,000 |
| Staria 2.2D Manual | 7,349,000 |
| Staria 2.2D Automatic | 7,749,000 |
| Staria HGS | 9,299,000 |
| MG | |
| HS 1.5T | 8,900,000 |
| HS PHEV | 8,499,000 |
| ZS 1.5 | 4,399,000 |
| ZS EV | 6,250,000 |
| ZS EV Facelift | 7,017,000 |
The government has also imposed 35% additional customs duties on the import of vehicles under the following PCT codes:
- 8703.2323 — Sport utility vehicles -SUVs 4×4
- 8703.2329 — Sedans and Hatchbacks)
- 8703.2490 — diesel-powered vehicles
- 8703.3223 — CKD or SKD kits for SUVs
- 8703.3225 — all-terrain vehicles (4×4)
- 8703.3229 — Commercial vehicles
- 8703.3390 — Other vehicles with internal combustion engines or electric motor
- 8703.9000 — Vehicle included the SRO.1517(I)/2022
Industry Concerns
The government has discouraged the import and sales of luxury cars and SUVs in Pakistan. Its recent steps have begun impacting car demand in Pakistan with sales and car financing falling compared to previous months.
Experts speculate that these steps will further aggravate the struggles of the Pakistani car industry which is already plagued with inflationary and supply-chain issues.
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Thank you imported government.
Who needs these imported cars anyway? There are too many cars with no place to park them, as it is.
I am intrsrted
Except essential all imports should be taxed, smuggling controlled and dollar outfows restrained. Simultaneously ease up exports, increase dollar inflows. Ignore naysayers. Balance of payment will be corrected. That is what needs to be done.
I agree with everything you say except restraining outflows of dollars. It is consumer choice where he/she wants to spend its money. If I have 100k usd which I have earner, than its my choice to spend where I feel like. It starts bad chain reaction and eventually inflows of dollars stop because the confidence is lost that once dollar comes in than it doesnt go out.
Pakistan doesn’t need to import these luxury vehicles, let alone import them at an increased duty. No industry should be allowed to conduct business for personal gains at the expense of the country’s economic stability. Until the time when Pakistan gets free from foreign debt, no luxury import should be allowed at all!
From which date this policy will apply?
This government’s brain is in its ankles. It is committing one folly after the other. The country’s economic situation is extremely poor but this does not mean that such drastic measures should be taken. Yes, tax the higher CC engines even higher but taxing heavily around 1000 CC cars is insane. We all know very well the price and quality of locally assembled cars. Compare these prices to the same models assembled in the neighbouring India ( Suzuki Alto vs Suzuki Maruti is an example).
By the way is there any public transport system in Pakistan? My answer is a big No.
Please do not make life Hell for the common man. Please don’t.
The thing is that yes if we stop or overtax the imported vehicles, we should at least try to improve the standard of local cars. Many low budget cars still don’t have air bags, they don’t have AC and the price hike is unprecedented. It will further encourage the local plunderers to keep selling non standard cars in price range of millions.
Extremely bad policy of the GOVT to imposed heave taxes on imported cars, where as local car industry no control of prices by GOVT. this will lead to pay heavy prices to consumer to buy new cars. You cant stable economy this way.