The Budget 2026-27 was approved on June 23, 2026, and one of the most debated changes for the car buyer is the substantial reduction in customs duty on imported vehicles of less than 800cc. This is a pretty big deal for anybody interested in Japanese 660cc vehicles.
What is Remarkably New?
The Finance Bill 2026-27 lowered customs duty on imported vehicles up to 800 cc from 50% to 30%. That’s a 20 percent reduction and directly impacts the segment with 660cc engines as they’re in the up to 800cc customs duty band.
This has been one of the most impactful cuts in small car import duties in recent years in Pakistan. In the past, the customs duty had remained at 50% on this category for a long time, which was one of the key factors behind the high cost of imported Japanese kei cars.
| Category | Old Customs Duty | New Customs Duty | Change |
| Up to 800cc (incl. 660cc) | 50% | 30% | -20% |
| 801cc to 1000cc | 50% | 30% | -20% |
| 1001cc to 1300cc | 45% | 25% | -20% |
| 1301cc to 1500cc | 65% | 45% | -20% |
| 1501cc to 1800cc | 75% | 55% | -20% |
| 1801cc to 2000cc | 100% | 74% | -26% |
Which 660 cc cars are best?
Japanese kei cars dominate the 660cc imported car market in Pakistan, owing to urban driving, superb fuel economy, and easy handling. The most likely models to have an impact are:
- The Daihatsu Mira is one of the most popular imported cars in Pakistan. Light, fuel-efficient vehicles exist in two different types, manual or automatic, and are widely used in the used import market.
- Unlike the older kei cars, the interior of Nissan Dayz looks more modern, features better levels of safety, and has better resale value in the second-hand market in Pakistan.
- This is a Japanese import Suzuki Alto, rather than a locally assembled model, and it has considerably stronger economy, automatic transmission, and build quality.
- Honda N-Box and N-WGN: More upscale kei models with roomy interiors for a kei with the interior buy-in and a dedicated fan base.
- Mitsubishi eK Wagon: A sturdy wagon with a decent ride and features that are on the upper side of standard.
The potential relief in customs duty could be up to Rs. 2.5 lakh on specific models based on the car’s evaluation on the date of import.
What Does This Mean in Practice?
Let’s face it, one of the expenses of importing a car is customs duty. Other taxes also remain, such as regulatory duty, sales tax, additional customs, and import stage income tax. The Finance Bill has now settled the customs duty part of it, but the complete picture is only revealed when a car comes into port.
Even changes in the exchange rate can cancel out duty savings. Some of this advantage is taken away due to currency devaluation until the arrival of the shipment. Over the past year, shipping rates have also fluctuated.
However, a 20% decrease in customs duty is not a negligible measure. This really bridges that price gap for anyone who had been thinking about buying a 660cc import but saw it slightly past their price range. Decrease duties, more trade with fewer exceptions, more options for buyers, and potentially more competition for pricing.
Why Is the Government Doing This?
The duty cut is part of a bigger picture. Meanwhile, the draft Auto Policy 2026-31 has suggested a phased reduction in import duties to rationalize pricing, make vehicles more accessible, and competitive.
The point that a government representative made was that lower duties on small, efficient cars are not meant to be tax cuts on luxury imports. Making the purchase of a 660cc car from Japan more accessible to a middle-income holder in Lahore or Karachi is in alignment with the goal of affordability. Certainly, duties on a 3,000cc luxury sedan are not being reduced, as new duties are being imposed on larger vehicles above the 2,000cc mark.
Should You Wait or Buy Now?
The changes to the duty go into effect on July 1, 2026. Traffic already in the process of importation and pre-clearance will adhere to the pre-existing duty structure. New rates to benefit cars imported after 1 July.
Just wait till the new structure is in place and shipments begin rolling at the new prices if you’re still looking for a 660cc imported car. Some dealers will need to wait until prices settle down and wait for the market to establish a new equilibrium in the first few weeks.
Search for Imported Cars in Pakistan?
FameWheels offers verified listings, view inspection reports, and bid on cars online. As Budget 2026-27 made imported 660cc cars more accessible, it is the perfect time to buy your first car.
Conclusion
The custom duty cut for imported vehicles below 800cc, as per Budget 2026-27, is a very material and concrete advantage for those who have an interest in owning Japanese cars of 660cc. Cut in customs duty rates from 50% to 30% and savings of up to Rs. 2.5 lakh on some of the models, this kind of policy change actually moves the market. July 2026 might as well be the perfect moment for those waiting for the right deal.
