Major update announced on used vehicles import in Pakistan

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced significant changes to Pakistan’s vehicle import policies, ARY News reported.

In a Senate Finance Committee meeting chaired by Saleem Mandviwala, the minister said that the commercial import of vehicles up to five years old will be permitted, subject to a 40% duty, starting September 2025.

Additionally, under the baggage scheme, individuals who have resided abroad for at least 700 days will be allowed to import such vehicles.

The minister outlined a phased reduction in duties for imported used vehicles. From July 1, 2026, vehicles older than five years can also be imported, with the duty reduced to 30%. This duty will further decrease to 20% from July 1, 2027, and to 10% from July 1, 2028. By July 1, 2029, the duty on imported used vehicles will be completely eliminated, dropping to zero.

Yesterday, the National Assembly Standing Committee on Finance recommended the imposition of a carbon levy on all locally manufactured and imported petrol and diesel vehicles with engine capacities above 1300cc.

The decision was made during a recent meeting of the National Assembly Standing Committee on Finance with Pakistan People’s Party MNA Syed Naveed Qamar in chair.

The committee endorsed a 2 percent carbon levy on petrol and diesel vehicles with engine capacities ranging from 1300cc to 1800cc, applicable to both locally produced and imported units.

For vehicles exceeding 1800cc, a 3 percent carbon levy has been approved for both local and imported petrol and diesel models.