Islamabad : Pakistan is set to revise its vehicle import policies, with significant changes announced by Finance Minister Muhammad Aurangzeb.
During a Senate Finance Committee meeting chaired by Saleem Mandviwala, the minister revealed that the commercial import of vehicles up to five years old will be permitted starting September 2025, subject to a 40% import duty.
Under the existing baggage scheme, individuals who have resided abroad for at least 700 days will also be eligible to import such vehicles.
The government plans a phased reduction in import duties over the coming years, with the following timeline:
From July 1, 2026: Vehicles older than five years can be imported with a reduced duty of 30%
From July 1, 2027: Duty further decreases to 20%
From July 1, 2028: Duty reduces to 10%
By July 1, 2029: Duty on imported used vehicles will be eliminated entirely
In addition to these changes, the National Assembly Standing Committee on Finance recommended imposing a carbon levy on all locally manufactured and imported petrol and diesel vehicles with engine capacities above 1300cc.
The committee approved a 2% carbon levy on vehicles with engine capacities between 1300cc and 1800cc, and a 3% levy on vehicles exceeding 1800cc, applicable to both local and imported units.
