During a briefing on the changes in customs tariffs to the Senate Standing Committee on Finance, FBR officials informed the Senate that the government has decided to permit the commercial import of 5-year-old vehicles starting from the next fiscal year. An additional 40 percent customs duty will be imposed on these imported vehicles.
Officials further stated that the IMF has set a condition to gradually reduce the duty on imported vehicles to zero over the next four years. The duty will be reduced by 10 percent each year. Regardless of the number of vehicles imported — whether one or two hundred — an additional 40 percent duty will apply to each.
According to Ministry of Commerce officials, the import of old vehicles will commence in September 2025. In the future, the import of 6 and 7-year-old vehicles may also be permitted. Under the new auto policy, tariffs on imported vehicles will be significantly reduced.
The standing committee has recommended allowing the import of 5-year-old vehicles under both the baggage schemeand commercial import. In response, Ministry of Commerce officials clarified that even under the baggage scheme, a 40 percent additional tax will be imposed. Under the gift scheme, overseas Pakistanis will be able to gift a vehicle to their family members.
FBR officials also informed the committee that the tax on vehicles up to 850cc has been increased from 12.5 percent to 18 percent.
