ISLAMABAD – Pakistani government introduced major changes to import duty structure for vehicles in fiscal year 2025. As per the revised policy, the government offers tax relief across several vehicle categories, especially for imported cars.
If you import a 1000cc non-hybrid vehicle priced somewhere around Rs2.5-3 million, the revised duty structure for FY2025 will result in noticeable savings compared to the previous fiscal year. Previosuly, the total tax and duty incidence on such a car was around 174pc, bringing total landed cost to around Rs. 7.67 million.
With updated 2025 rates, where duty incidence has been reduced to 165pc, the total landed cost comes down, which means direct saving of about Rs2lac-2.5 lac. The reduction mainly stems from a drop in Additional Customs Duty and a 5% cut in Regulatory Duty on vehicles.
To pass on relief, authorities made changes in Additional Customs Duty (ACD), 7pc to 6pc on all imported vehicles. Regulatory Duty (RD) has been slashed for big vehicles and 4×4 vehicles with engines between 1801cc and 3000cc.
Non-Hybrid Vehicles
The total tax incidence on mid-size cars (1301–1500cc) dropped from 174% in 2024 to 165% in 2025.
Larger engine vehicles (1801–3000cc) saw the biggest cut, with incidence falling from 429% to 361%, a 15.85% decrease.
Vehicles above 3000cc also received relief, dropping from 470% to 401%.
Minor reductions were applied to pickups, vans, and motorcycles.
Industry experts say the reduced duties in higher-end segments indicate a strategic shift to discourage smuggling and misuse of import schemes by making legal imports more viable.
