The Federal Budget 2025–26 has brought major relief for SUV enthusiasts and luxury car buyers in Pakistan. The government has reduced key import duties, resulting in significant price cuts on several high-end imported vehicles, especially luxury SUVs.

This policy shift, backed by the Finance Act 2025 and newly issued SRO 1152(I)/2025, includes reductions in:

Customs Duty (CD)
Regulatory Duty (RD)
Additional Customs Duty (ACD) – now reduced from 7% to 6%

These changes came into effect on July 1, 2025, and will remain valid until June 30, 2026, unless revised earlier.

SUVs Price Reductions – What You Can Expect

The drop in duties is clearly reflected in the current market. Some of the top imported SUV models now come with a significant reduction in price. Here are the key figures:

Toyota Prado LC150

2020 model: ↓ PKR 2.4 – 2.6 million
2021 model: ↓ PKR 2.9 – 3 million

Lexus LX570

2020 model: ↓ PKR 6.5 – 6.7 million
2021 model: ↓ PKR 7.5 – 7.8 million

Toyota Land Cruiser LC200 (URJ 202 Series)

2020 ZX: ↓ PKR 4.1 – 4.2 million
2021 ZX: ↓ PKR 4.7 – 4.8 million
2020 AX: ↓ PKR 3 – 3.2 million
2021 AX: ↓ PKR 3.5 – 3.7 million

Toyota Land Cruiser LC300

AX 2021–2023: ↓ PKR 3.7 – 5.5 million
ZX 2021–2024: ↓ PKR 4.9 – 8 million

50% RD On Imported SUVs & 4x4s

The new structure imposes 50% RD on all imported SUVs and 4x4 vehicles, regardless of engine size or whether they are new or used. This has led to major savings for popular luxury models, including the Prado, Land Cruiser, and Lexus LX series.

Encouraging Local Manufacturing

The RD on CKD/SKD kits for locally assembled vehicles remains at 5%, encouraging domestic production and reducing dependency on fully built imports.

Additionally, vehicles with bullet-proofing or security enhancements will be taxed using standardized valuation guidelines as per SRO 1121(I)/2007.

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What This Means For You

Whether you're a car dealer, importer, or luxury car buyer, this development opens up new possibilities:

Lower upfront costs
Improved legal import trends
Support for the local auto industry

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