It has been reported that the FBR (Federal Board of Revenue) has formally amended the tax regime of the imported vehicles in Pakistan. These amendments have become a part of the Finance Act 2026 and have been officially promulgated in the form of SROs (Statutory Regulatory Orders). The amended regime will have an impact on the taxation of imported cars, SUVs, and used vehicles.
FBR Issues SRO Cutting Duty on Imported Cars, Adds 30% on Used Imports
According to the new plan, the government has changed the structure of how import duties are levied on different categories of automobiles under the FBR Car Duty 2026 policy. The purpose is to bring change in the duty structure as per the new fiscal policy. This means that instead of maintaining the old duty rates for different vehicles, the FBR has categorized the vehicles and assigned new duty rates to each one of them under FBR Imported Car Duty 2026.
Read more: FBR Revises Customs Values for Imported Used Mobile Phones in Pakistan
Lower Duty for Some Imported Cars
One of the significant amendments is that there will be less regulatory duty required on some imports of vehicles. Now smaller and medium-sized imported vehicles will have to pay a reduced tax compared to what was paid earlier. This move is likely to result in reduced costs of importation of these vehicles. This has been done by the government to make the duty structure more in line with the present market conditions.
Higher Impact on Used Vehicle Imports
However, on the other hand, the government has also introduced a new duty on the commercial import of used cars under the FBR Bank Account Recovery Case 2026 context. This means that businesses will now have to pay additional duties when importing used cars compared to before. This policy targets certain types of vehicles that are usually imported through commercial routes. As a result, it is expected that this move will affect the prices of used imported cars.
Read more: Budget 2026-27: Senate Panel Approves 5% Tax on Social Media Earnings
Legal Implementation Through SROs
The tax policy has been implemented through SRO 1064(I)/2026 and SRO 1065(I)/2026. Previously, this was just a part of the Finance Act bill. Now these have been made into law by the FBR. The revised duty regime will become effective from July 1, 2026. This is because it coincides with the beginning of the new fiscal year for Pakistan. All imported car consignments will be levied on the basis of the new duty regime from this day forward under the FBR Bank Account Data Access Proposal.
It is expected that these changes will have an impact on the automobile industry in Pakistan. Importers might change their pricing policies according to the new taxation system. Vehicles will get marginally cheaper, whereas the prices of second-hand vehicles will rise owing to increased duties. Latest SROs of the FBR mark a revolution in the tax system of car imports in Pakistan. The rate changes will affect import costs and car prices soon. Duties on some cars are being reduced, while taxes on used cars are increasing. News source eTimes Pakistan.
