Imported vehicles' tax revised from July 2026

Islamabad: The National Assembly has approved the Finance Bill 2026–27, introducing a new tax structure for imported electric and luxury vehicles based on their value in US dollars.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb presented the bill, which was subsequently passed by the lower house of Parliament.

Under the approved measures, completely built-up (CBU) imported electric cars and SUVs valued at up to $75,000 will remain exempt from the new tax.

However, imported electric vehicles valued above $75,000 and up to $110,000 will be subject to a 30 percent tax according to the value.

For imported electric vehicles priced above $110,000, the tax rate will increase to 40 percent.

The new taxation framework is part of the government’s broader revenue-enhancement strategy for the fiscal year 2026–27.

The measures come as the Federal Board of Revenue (FBR) has been assigned a revenue collection target of Rs15.264 trillion for the upcoming fiscal year, compared to the revised target of Rs12.983 trillion for the current fiscal year ending June 30, 2026.

The National Assembly also approved a proposal to impose a five percent withholding tax on income earned through social media platforms.

The tax measures form part of wider budget reforms aimed at increasing government revenue, broadening the tax base, and strengthening tax compliance and monitoring mechanisms.