In a significant move under the Finance Act 2025, the Government of Pakistan has revised the import duties on vehicles ranging from SUVs like LC300, LC200, LX570 and LX600 to high-end luxury cars, bringing relief to automotive enthusiasts and buyers across the country. This policy shift, backed by the latest Statutory Regulatory Orders (SROs), aims to ease the financial burden on imported vehicle purchases by slashing key tax components.
What’s Changed?
Under the new fiscal measures, the Regulatory Duty (RD) has been reduced by 40% for cars above 1800cc. The reduction varies by vehicle category, offering greater relief on high-end and luxury imports.
The Additional Customs Duty (ACD) has also seen a drop from previous 7% down to 6% across all the imported vehicles. While seemingly minor, this 1% reduction adds up significantly for vehicles with high prices. These are now more aligned with engine capacity and vehicle type, further influencing the final retail price.
Until now, the impact of these tax cuts was mostly theoretical. But with updated retail pricing, the benefits are finally visible—especially for premium imported cars and SUVs. Earlier in a blog, we have also mentioned a detailed breakdown of tax and duties on imported cars.
Toyota
| Car Model | Model Year | Price Reduction (Est.) |
| Crown RS Advance | 2022 | ₨. 0.5 million |
Porsche
| Car Model | Model Year | Price Reduction (Est.) |
| Carrera GTS | 2024 | ₨. 24 million |
| 911 Turbo | 2023 | ₨. 26 million |
Mercedes
| Car Model | Model Year | Price Reduction (Est.) |
| G63 | 2021 | ₨ 20 million |
This recalibration in import duties reflects a strategic policy shift aimed at encouraging imports of modern vehicles, reducing smuggling, and broadening the formal car market. Whether you’re a buyer or an investor, now might be the right time to act, as luxury cars are finally becoming slightly less luxurious in price.
What do you think about the recent drop observed in prices of imported vehicles after budget 2025-26? Tell us in the comments section.
Stay tuned as we continue to track how these changes shape the automotive market landscape in Pakistan.
