Business Desk 
Oct 03, 2025
The Federal Board of Revenue (FBR) has announced a 40% Regulatory Duty (RD) on the commercial importing of old and used vehicles, according to a new notification from the government.
This new duty will be applicable on vehicles that fall under the following PCT Headings of the Customs Act, 1969, which are 8702, 8703, 8704, and 8711, including cars, jeeps, vans, trucks, and motorcycles. This duty will be above the general customs duties already in place.
Earlier, the Ministry of Commerce issued an SRO allowing commercial imports of vehicles up to five years old and subject to this additional duty.
The Ministry of Commerce's SRO was approved by the Economic Coordination Committee (ECC) of the Cabinet, headed by Finance Minister Muhammad Aurangzeb, at its meeting on September 18 and was then approved by the federal cabinet.
According to the SRO 1895(1)/2025 from the Ministry of Commerce and dated September 30, used vehicle imports would be permitted until June 30, 2026, by the government.
After that date, the government could do away with the five-year limit on imports of vehicles.
All imports will be held to environmental, safety, and quality standards as per applicable standards laid down by the Engineering Development Board (EDB) of the Ministry of Industries and Production.
The duty structure has also been laid out for the future. The 40% regulatory duty will remain in place until June 30, 2026, and then gradually decrease by 10 percentage points each year, phasing out completely by the fiscal year 2029-30, in line with recommendations of the Tariff Policy Board.
