Islamabad: The Federal Government of Pakistan has announced a significant policy shift aimed at curbing the commercial import of used vehicles. Through a new notification issued by the Ministry of Finance and Revenue (Revenue Division), a 40% regulatory duty has been levied on used vehicles imported under specific provisions of the Import Policy Order 2022.
The measure, formalized under S.R.O. 1898(I)/2025, applies to vehicles falling under PCT Headings 8702, 8703, 8704, and 8711. These include passenger cars, buses, trucks, and motorcycles imported under clause (xvi) of S. No. 10 of Appendix-C of the Import Policy Order.
This newly imposed duty is in addition to the regulatory duty already enforced through S.R.O. 1152(I)/2025 dated June 30, 2025, effectively raising the total cost burden on commercial importers of used vehicles.
Government officials say the move is intended to protect the domestic auto industry and discourage the influx of older, environmentally non-compliant vehicles into the country. The notification was signed by Additional Secretary Ashhad Jawwad.
Industry stakeholders are expected to respond in the coming days, with many anticipating a slowdown in used vehicle imports and potential price hikes in the local market.