What Does This Mean for Importers?

The revised taxation framework is expected to increase the overall cost of commercially importing used vehicles.

Potential implications include:

Higher import costs for commercial vehicle importers.
Increased landed cost of imported used cars.
Possible increase in showroom prices.
Lower profit margins for import businesses.
Reduced affordability for buyers seeking imported used vehicles.

Importers may also need to reassess sourcing strategies and pricing models as the revised duties take effect.

Pakistan Market Perspective

Pakistan's used imported vehicle market has traditionally offered buyers access to vehicles that are unavailable through local assembly, particularly Japanese imports.

According to CarAdvisers' market analysis, the revised duty structure may narrow the price gap between imported used vehicles and locally assembled models. While the policy supports the government's objective of reducing import dependence, it could also affect consumer choice in segments where imported vehicles have remained popular due to their quality, reliability, and features.

The long-term impact will depend on future tariff policies, exchange rates, and the availability of locally assembled alternatives.

CarAdvisers Insight

According to CarAdvisers' market analysis, the revised Regulatory Duty reflects the government's continued focus on balancing revenue generation with import management. However, commercial importers are likely to face higher operating costs, while consumers may experience increased prices for imported used vehicles.

For buyers considering an imported vehicle, comparing total ownership costs with locally assembled options will become increasingly important under the new tax regime.

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Frequently Asked Questions

What is the new Regulatory Duty on commercial used vehicle imports?

The FBR has revised the Regulatory Duty to 30% through SRO 1065(I)/2026, effective July 1, 2026.

Does this duty apply to all imported used vehicles?

No. It applies specifically to commercially imported used vehicles covered under the Import Policy Order 2022.

Is the 30% Regulatory Duty the only tax payable?

No. The 30% Regulatory Duty is charged in addition to the Regulatory Duty already imposed under SRO 1064(I)/2026, along with other applicable import duties and taxes.

Which law authorises the revised duty?

The notification has been issued under Section 18(3) of the Customs Act, 1969.

Final Verdict

The implementation of SRO 1065(I)/2026 marks another significant step in Pakistan's automotive import taxation reforms under the Finance Act 2026. By revising the Regulatory Duty to 30% for commercial used vehicle imports and applying it alongside existing duties, the government has increased the overall tax burden on imported used vehicles.

From a market perspective, the move is likely to influence importer strategies, vehicle pricing, and buyer preferences in the months ahead. Whether it successfully promotes local manufacturing while maintaining healthy competition in the automotive market remains to be seen.

What impact do you think the revised 30% Regulatory Duty will have on Pakistan's used imported vehicle market? Share your thoughts in the comments below.

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