The federal government has announced major relief for Used Car Buyers in Pakistan by reducing the duties on imported used cars with engines below 1800 cc.
The new decision came into effect on July 1. It will apply to the commercial import of used vehicles under the revised policy.
The Federal Board of Revenue has also issued a notification in this regard. The notification confirms a reduction in the additional regulatory duty on used-car imports.
According to the new notification, importers will now pay a 30 percent regulatory duty on commercial imports. Earlier, the rate stood at 40 percent.
This change may reduce the cost pressure on imported used vehicles. It may also create more options for Used Car Buyers in the local market.
However, the regulatory duty will apply in addition to other existing duties and taxes. Therefore, the final price will still depend on the total tax structure and market demand.
The government has also decided to reduce this regulatory duty every year. Officials said the duty will fall by 10 percent annually.
Under the current plan, the additional regulatory duty will end completely by 2029-30. This step may gradually make used car imports easier in the coming years.
The government has already allowed the commercial import of used vehicles. It made the required changes to the Import Policy Order 2022 to support this decision.
Still, importers must follow strict rules before bringing used vehicles into Pakistan. These rules include environmental and safety standards.
The government wants to balance consumer relief with road safety and environmental protection. It also wants to regulate imports through proper legal channels.
The decision has come at a time when car prices in Pakistan remain high. Many buyers have difficulty purchasing new vehicles due to rising costs.
As a result, imported used cars may attract more attention in the market. The lower duty can encourage importers to bring more vehicles with engines under 1800 cc.
This development may also increase competition in the auto sector. Local buyers may benefit if the supply of affordable vehicles improves.
However, market experts believe prices may not fall immediately. Import costs, exchange rates, freight charges, and dealer margins will still affect final rates.
Even then, the policy gives a positive signal to Used Car Buyers. It shows that the government wants to provide more choices in the vehicle market.
The coming months will show the real impact of this duty cut. If importers respond actively, buyers may see more used car options across Pakistan.
For now, Used Car Buyers can expect better availability of imported vehicles with engines below 1800 cc. The phased duty reduction may also bring long-term relief to the market.
