FBR reduces regulatory duty on imported SUVs, ATVs

ISLAMABAD: The Federal Board of Revenue (FBR) has significantly reduced the regulatory duty on imported Sport Utility Vehicles (SUVs) and All-Terrain Vehicles (ATVs) as the Federal Budget 2026-27 measures came into effect today.

According to an SRO (1064) issued by the FBR, the revised duty rates have come into effect immediately across the country.

Under the new notification, the regulatory duty on imported SUVs and ATVs with an engine capacity of 1,800cc and above has been reduced from 50% to 20%.

Similarly, the regulatory duty on imported Completely Built-Up (CBU) vehicles and SUVs with an engine capacity of below 1,800cc has been cut from 10% to 8%.

The reduction in duties is part of the government’s budgetary measures aimed at revising the tax structure on imported vehicles.

The development comes amid growing calls from auto importers for greater competition in Pakistan’s automobile market.

Read more: Why car prices are higher in Pakistan? an expert explains

Earlier, the All Pakistan Motor Dealers Association (APMDA) criticized the country’s auto policy, alleging that protectionist measures had allowed local assemblers to maintain a longstanding monopoly while keeping vehicle prices high.

Speaking in ARY News program The Story Behind, APMDA Chairman HM Shahzad said the objective behind establishing Pakistan’s local automobile industry more than 40 years ago was to transfer technology, achieve localisation, manufacture affordable vehicles and eventually export them.

However, he claimed the industry remains dependent on imported CKD and SKD kits, with genuine local manufacturing yet to materialise.

Shahzad alleged that successive governments and the Engineering Development Board (EDB) had protected major assemblers instead of promoting competition and localisation. He claimed consumers had paid the price through vehicle prices that are significantly higher than those in neighbouring countries.