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Complete Breakdown of Car Import Duties
In a recent legislative change, the Pakistani government has implemented new car import duties through the Finance Bill 2026-27. This update notably decreases taxes for small and mid-level cars while imposing substantial increases for premium vehicles, including traditional combustion engines, hybrids, and electric vehicles (EVs). The new structure aims to create affordability for smaller cars but also outlines significant penalties for high-capacity and luxury imports, creating a stark pricing divide in the market. Buyers of smaller imported vehicles will enjoy reduced Customs Duties, while those seeking advanced luxury models will face increased financial burdens due to the new Special Excise Duty.
MonitorConfidence: MediumShort term horizon
Published 4 Jul 2026, 08:30 UTC2 min read
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Brief
NewsBite reading:Overview of Pakistan's Revised Car Import Duties
TL;DR
- Updated vehicle tax structure in Pakistan via Finance Bill 2026-27
- Decreased duties for cars up to 1800cc, benefiting smaller vehicles
- Premium cars over 2000cc face higher taxes, including a new Special Excise Duty
- Hybrid vehicles above 2000cc also subject to increased duties
- EVs transition to a three-tier duty system with higher taxes for expensive models
Interesting facts
- Tax cuts primarily benefit small and mid-size imported vehicles
- Luxury vehicles and high-capacity hybrids face significant tax increases
- The taxation overhaul introduces a complex structure for imported EVs