FBR Slaps 40% Duty on Imports of Used Vehicles in Pakistan

The Federal Board of Revenue (FBR) Pakistan has imposed a 40% regulatory duty on commercial imports of old and used vehicles, according to a new notification issued Thursday.

The levy, applied under S.R.O. 1898(I)/2025, is in addition to the duty already in place under an earlier order. It covers used vehicles under PCT headings 8702, 8703, 8704 and 8711, permitted for import under Pakistan’s updated policy.

As part of the framework, the extra duty will gradually be reduced by 10 percentage points each year before being fully phased out by 2029-30. The Pakistan government says the measure is aligned with IMF commitments to liberalize tariffs while allowing controlled imports of five-year-old vehicles.